Suppose the market demand for milk is Qd = 150 - 5P. Additionally, suppose that a dairy's variable costs are VC = 2Q2 (where Q is the number of gallons of milk produced each day), its marginal cost is MC = 4Q and there is an avoidable fixed cost of $50 per day. In the long run there is free entry into the market. Suppose the demand for milk doubles. What is the new long-run equilibrium price?
A. $20 per unit
B. $40 per unit
C. $24 per unit
D. $2 per unit
A. $20 per unit
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Nations specialize in production and engage in international trade in order to
A. protect domestic consumers and producers. B. improve transportation. C. increase employment. D. increase consumption and income.
What is the definition of the unemployment rate? How are part-time workers and discouraged workers treated when calculating the unemployment rate?
What will be an ideal response?
The new monetary policy tool that the Fed began using in 2008 is
A) changing the interest rate paid on reserves. B) imposing a surcharge on credit cards. C) putting a tax on all financial transactions. D) borrowing from China.
Other things the same, an increase in domestic prices raises the real exchange rate
a. True b. False Indicate whether the statement is true or false