If a monopolistic competitor is producing an output for which marginal revenue is $40 and marginal cost is $32 to maximize profits the firm should
A. decrease the level of output.
B. keep the level of output constant.
C. continue to make $8 per unit.
D. increase the level of output.
D. increase the level of output.
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In 2015, ZVX motors sold 17,241 units of their latest superbike, the ZVX-1200 . Each ZVX-1200 costs $9,763 to the company, and is sold at a price of $17,255 per unit. The total profit earned by ZVX motors in 2015 is:
a. $297,493,455. b. $129,789,523. c. $132,310,819. d. $129,769,572.
An improvement in production technology will
a. increase a firm's costs and increase its supply. b. increase a firm's costs and decrease its supply. c. decrease a firm's costs and increase its supply. d. decrease a firm's costs and decrease its supply.
An increase in Swiss interest rates will cause:
A. an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar. B. a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. C. an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. D. a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
In the short run, the ATC curve and the AFC curve for information products are
A) downward sloping. B) horizontal. C) upward sloping. D) vertical.