If a competitive firm can sell its product at $1,600 per unit and the marginal cost of the firm is MC = 1,100 + 2Q, then the firm will produce
A. 1,084 units.
B. 160 units.
C. 1,100 units.
D. 250 units.
Answer: D
You might also like to view...
The industry for personal care products in Richland is monopolistically competitive in nature. The firms in this industry earn positive economic profits in the short run
Do the firms continue to earn positive profits in the long run? Explain your answer.
One reason that the aggregate demand curve has a negative slope is because
A) firms supply more when prices rise. B) people buy more foreign goods when the domestic price level rises. C) the amount of money in the economy increases when the price level rises. D) firms supply less when prices rise.
Which of the following will shift the consumption function upward?
A. a tax increase B. expectations of inflation C. higher disposable income D. lower wealth holdings
Analyze the demand function for a dinner at FancyFoods, a restaurant, given the four changes listed below:(a) The restaurant down the street, Gourmet Meals, features a two-for-one meal special.(b) The opera provides a coupon offering a 15 percent discount at FancyFoods with each ticket for the 6:00 p.m.show.(c) Always Round Tire runs a special on tires; a 30 percent reduction in price if you buy four tires.(d) The main employer in town provides a large increase in salaries for white-collar workers.
What will be an ideal response?