What three decisions do firms make simultaneously?
What will be an ideal response?
(1.) How much to supply.
(2.) Which technology to use.
(3.) How much of each input to demand.
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Which of the following is true about a risk-averse individual facing a full menu of actuarily fair insurance contracts to choose from?
A. The individual will "over-insure" if consumption is more meaningful in the good state. B. The individual will "over-insure" if consumption is more meaningful in the bad state. C. The individual will fully insure when tastes are state-independent. D. (a) and (b) are true. E. (a) and (c) are true. F. (b) and (c) are true. G. All of the above. H. None of the above.
Refer to Table 17-4. What are the price and quantity of workers that result in the maximum amount of profit Apple would earn from selling iPods?
A) $140; 2 B) $180; 1 C) $140; 3 D) $160; 2
Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the domestic market supply function is Qs = 2.5P - 7.5. Suppose further that the world price for the good in question is $3.40 per unit. Under conditions of free trade, how much consumer surplus will there be?
A. $26,450 B. $26,650 C. $52,900 D. $53,300
Rolls Royce may actually sell fewer cars at lower prices due to the "snob effect."
a. True b. False Indicate whether the statement is true or false