If the firm in Figure 23.4 raised the price of its product above $4, the firm would
A. Increase its profits.
B. Reduce its total revenue to zero.
C. Not affect revenues but increase profits because costs would decrease.
D. Increase its total revenue but not its profits because costs would increase.
Answer: B
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A) borrowers only B) There is no benefit, because money does not create wealth. C) savers only D) both savers and borrowers
If the cost per unit of output for a particular product is $10 and the product sells for $20, what is the percentage markup over cost per unit?
a. 200 percent b. 10 percent c. 100 percent d. 20 percent e. 50 percent
On balance, markets do some things very well, and some things poorly
a. True b. False Indicate whether the statement is true or false
If your professor decided to give all of his students the highest grade in the class, would that affect your classmates' incentives to study?
What will be an ideal response?