Suppose Uzbekistan decides to increase its production of bolts by 10. What is the opportunity cost of this decision?
A. 1/2 nail
B. 5 nails
C. 20 nails
D. 2 nails
Answer: C. 20 nails
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When a supplier imposes resale price maintenance on its dealers, social gain will increase as long as
a. the supplier chooses to charge a competitive price for its product. b. the value consumers receive from dealer services outweighs their cost. c. dealers are allowed to charge consumers less than the supplier's recommended retail price. d. dealers are able to enter and exit the industry costlessly.
Answer the next question based on the demand and cost schedules for a monopolistically competitive firm given in the table below.PriceQuantity DemandedTotal CostOutput$201$101182202163293144364125405106426What will be the economic profit or loss for this monopolistically competitive firm at the profit-maximizing level of output?
A. +$20 B. +$10 C. -$15 D. +$28
Cross-price elasticity of demand is used to determine whether
a. a product is an inferior or normal good b. a product is a necessity or a luxury c. two products are substitutes or complements d. price and total revenue are directly or inversely related e. the product's demand curve is linear
A monopolist sets the price by matching which of the following?
a. The profit maximizing quantity to the price on the demand curve b. The price to marginal revenue c. The price to the average total cost curve d. The price to the marginal cost curve