A price-taking firm's variable cost function is C = Q3, where Q is the output per week. It has an avoidable fixed cost of $1,024 per week. Its marginal cost is MC = 3Q2. What is the profit maximizing output if the price is P = $192?
A. 0 or 5.33 or 8
B. 5.33 or 8
C. 0 or 5.33
D. 0 or 8
D. 0 or 8
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Which of the following are not considered part of government purchases?
A) a tank purchased by the federal government B) teachers' salaries paid by a local government C) a bridge purchased by the state government D) welfare benefits
Which of the following is not a permanent member of the FOMC?
A) The president of the New York Fed B) The president of the Philadelphia Fed C) The chairman of the board of governors D) All of the above are permanent members of the FOMC.
Technology firms are clustered near each other ______.
a. because federal regulation require them to do so b. to contain negative externalities in one area c. to be close to deposits of natural resources d. in order to share technology and collaborate
On January 1, 2001, El Salvador "dollarized" its economy. The U.S. dollar circulated throughout the country along with the Salvadoran colon for the first year. By the end of 2002, the official currency circulating in the economy was the U.S. dollar. El Salvador abandoned its own currency and adopted the currency of the United States because:
A. the government would still be able to finance deficits by printing U.S. dollars, and inflation would be under control. B. the government would still be able to run deficits by printing money. C. with dollars, monetary policy would be more effective at offsetting demand shocks in the economy. D. the government would no longer be able to finance deficits by printing money, and inflation would be under control.