If the monopoly illustrated in the figure above could engage in perfect price discrimination, then when it maximizes its profit the total revenue collected by the firm would be
A) $110.
B) $120.
C) $210.
D) $310.
C
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This theory views shocks to tastes (workers' willingness to work, for example) and technology (productivity) as the major driving forces behind short-run fluctuations in the business cycle because these shocks lead to substantial short-run
fluctuations in the natural rate of output. A) the natural rate hypothesis B) hysteresis C) real business cycle theory D) the Phillips curve model
The law of increasing opportunity costs is a result of the fact that:
A) the value of the dollar has declined over time. B) wage rates rise as the economy reaches full employment. C) consumers tend to value a good more when they don't have much of it. D) resources are not equally productive in all output categories.
Refer to Scenario 9.2 below to answer the question(s) that follow. SCENARIO 9.2: Tom borrowed $40,000 from his parents to open a donut stand. He agrees to pay his parents a 5% yearly return on the money they lent him. His other yearly fixed costs equal $10,000. His variable costs equal $25,000. He sold 40,000 dozen donuts during the year at a price of $2.00 per dozen.Refer to Scenario 9.2. Tom's profit is
A. $0. B. $26,000. C. $30,000. D. $43,000.
If gas prices today were $4.00 per gallon, in terms of history, this would be
A. not an all-time high but rather high in inflation-adjusted terms. B. about the long-term historical average in inflation-adjusted terms. C. an all-time high in nominal terms and inflation-adjusted terms. D. an all-time high in inflation-adjusted terms but not nominal terms.