Figure 10.6 shows prices, demands, and cost data for the only restaurant in a small town. If the restaurant charges the single price of $8 per meal, what is its profit from senior customers?
A. $1,200
B. $1,500
C. $2,280
D. $2,560
Answer: A
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The table above lists six points on the production possibilities frontier for grain and cars. What is the opportunity cost of producing the 5th ton of grain?
A) 16 cars per ton of grain B) 6 cars per ton of grain C) 3 cars per ton of grain D) 2 cars per ton of grain
Refer to Figure 11-7. When the output level is 100 units average fixed cost is
A) $10. B) $8. C) $5. D) This cannot be determined from the diagram.
Which school of economics held that individuals and business firms learn, through experience, to instantaneously anticipate the consequences of changes in monetary and fiscal policy?
A. The Keynesians B. The monetarists C. The supply-siders D. The rational expectationists
Refer to the above figure. S1 is the supply curve that includes only private costs. S2 is the supply curve that includes social costs. If the firm sets output by focusing on private costs, the per-unit external cost will equal
A) P2. B) P4 - P2. C) P4 - P1. D) P2 - P1.