You are the manager of a monopoly that faces a demand curve described by P = 80 ? 5Q. Your costs are C = 10 + 5Q. The revenue-maximizing output is:
A. 2.5.
B. 8.
C. 5.
D. None of the answers is correct.
Answer: B
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In Figure 4-5, the commodity market is in equilibrium
A) at points B, C, and E. B) at points A and E. C) only at point E. D) at points E and D. E) at points A, B, E, and C.
The greater the marginal propensity to consume (MPC) in the economy, the greater the spending multiplier
a. True b. False Indicate whether the statement is true or false
The country of Solidia is politically very stable and has a long tradition of respecting property rights. If several other countries suddenly became politically unstable, we would expect Solidia's
a. real interest rate to rise. b. real exchange rate to rise. c. net exports to rise. d. None of the above is likely.
The CEO of Coffman Enterprises wants to export products to foreign markets. However, top executives at Coffman are concerned that the firm will face fierce competition from foreign rivals because Coffman lacks significant core competencies. The executives are most likely worried that Coffman lacks ________.
A) capital advantages B) internalization advantages C) location advantages D) ownership advantages