A fishing boat owner sells her entire catch of 20,000 fish and maximizes profit that is equal to $7,000 . Suppose fish prices increase and you are asked to calculate her profit knowing that she now sells 30,000 fish. If fish prices increased by $3 per fish, what can you say about her new profit level?
a. profit > $90,000
b. profit < $97,000
c. profit < $90,000
d. profit > $67,000
e. profit > $10,500
B
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Assume an analyst has been hired to estimate the price elasticity of demand for Levi's brand blue jeans and for blue jeans in general. Ceteris paribus, we would expect the price elasticity of demand in absolute value to be:
A) larger for Levi's brand blue jeans than for blue jeans in general. B) larger for blue jeans in general than for Levi's brand blue jeans. C) approximately the same for both Levi's brand blue jeans and blue jeans in general. D) none of the above because the market for blue jeans cannot be analyzed using the model of supply and demand.
Refer to Figure 10.2. In moving from the competitive level of output and price to the monopoly level of output and price, the monopolist is able to add to producer surplus:
A) the area BCEF. B) the area BCEF less the area GFH. C) the area BCEH. D) the area BCEH less the area GFH. E) none of the above
A work stoppage by a union in solidarity with another union's cause is known as a
A) secondary boycott. B) sympathy strike. C) jurisdictional dispute. D) primary boycott.
Suppose a monopsonist hires its second worker and this person has a marginal labor cost of $75 per day. If the wage rate is now $62.50 per day, what was the wage rate of the first worker before the second was hired?
a. $40 b. $45 c. $50 d. $55 e. $60