A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. If the market maker is free to choose the number of transactions he can make, what is his maximum profit?
a. $8
b. $10
c. $18
d. $28
c
Economics
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What is the relationship between price and marginal revenue for a competitive firm?
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In the graph above, a government imposed price of $35 represents a price _____ and there is a _____.
A. floor; surplus
B. floor; shortage
C. ceiling; surplus
D. ceiling; shortage
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In terms of yields on savings, which of the following is the highest performer?
A. Defined benefit pension programs B. Ponzi schemes C. Social Security D. Defined contribution programs
Economics