A monopolistic firm has a sales schedule such that it can sell 10 prefabricated garages per week at $10,000 each, but if it restricts its output to 9 per week it can sell these at $11,000 each. The marginal revenue of the tenth unit of sales per week is:
A. -$1,000.
B. $9,000.
C. $10,000.
D. $1,000.
Answer: D
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Employment and (total) potential GDP increase if the
A) labor supply curve shifts rightward and the labor demand curve does not shift. B) labor demand curve shifts leftward more than the labor supply curve shifts rightward. C) labor demand curve shifts leftward and the labor supply curve does not shift. D) None of the above answers are correct.
A mutual life insurance company is owned and controlled by its
A) partners. B) managers. C) stockholders. D) policyholders.
A market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.
Given the scenario described, if the market price of grills is $300, who participates in the market? A. Only Abe, Butch, and Collin participate. B. Only Collin and Daniel participate. C. Only Abe and Butch participate. D. Only Daniel participates.
In general, which of the following is NOT a characteristic of a fixed exchange rate regime as defined by the text?
a. Capital is mobile. b. Exchange rates are determined by the market in the short run. c. Arbitrage is free to operate. d. Government takes an active role in foreign currency market intervention.