You are a manager in a perfectly competitive market. The price is $14. Your total cost curve is C(Q) = 10 + 4Q + 0.5Q2. What level of output should you produce in the short run?
A. 10
B. 5
C. 15
D. 8
Answer: A
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The most heavily traded American stocks are traded on the
A. New York Stock Exchange. B. American Stock Exchange. C. regional stock markets. D. “third market.”
If Country A has an absolute advantage over Country B in the production of every commodity:
a. mutual gains from trade between Country A and Country B would be impossible. b. Country B would be able to gain from trade but not country A. c. the joint output of the two countries could not be increased through specialization and exchange. d. mutual gains from trade would still be possible.
According to the income effect, an increase in the price of oranges will: a. cause consumers to consume more apples because of greater savings on that good
b. cause consumers to spend more on oranges because a higher price signals that oranges are better than apples. c. cause consumers to replace some oranges with other fruit that is now relatively cheaper than oranges. d. leave consumers with less real income to spend on all goods.
There is no control over price by firms in:
A. pure competition. B. pure monopoly. C. oligopoly. D. monopolistic competition.