A firm with two plants, A and B, has the following estimated demand and marginal cost functions:Qd = 120 - 10PMCA = 4 + (1 / 5)QAMCB = 6 + (1 / 10)QBWhat is the profit-maximizing price?
A. $9.50
B. $7
C. $8
D. $9
E. none of the above
Answer: A
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The four categories of expenditure used by the expenditure approach method to calculate GDP are
A) consumption expenditure, taxes, saving and investment. B) consumption expenditure, investment, net imports and saving. C) saving, taxes, government expenditure and investment. D) consumption expenditure, investment, government expenditure and net exports.
If the price level rises, the quantity of
A) nominal money people demand increases. B) real money people demand increases. C) nominal money people demand decreases. D) real money people demand decreases.
In a perfectly competitive industry we are likely to find
a. firms producing a wide variety of products b. barriers to entry c. no profit possible in the short run d. firms that do not advertise e. firms that can choose the price of their products
For a good such as? food, the income elasticity is likely
A) negative.
B) equal to zero.
C) positive and less than one.
D) positive and greater than one.
E) undefined because people always buy the same amount of food.