Suppose total benefits and total costs are given by B(Y) = 600Y ? 12Y2 and C(Y) = 20Y2. What is the maximum level of total benefits?
A. 1,600
B. 7,500
C. 2,812.5
D. None of the statements associated with this question are correct.
Answer: B
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In the above figure for a monopolistically competitive firm, the total economic profit at the profit-maximizing point is
A) $0. B) $240. C) $360. D) $300.
Securities exchanges pay no attention to hedge funds
a. True b. False
Economists might be willing to accept a policy that adversely affected distribution of income if it
A. lessened income disparities. B. diminished labor productivity by a large amount. C. increased productivity by a large amount. D. were favorable to the rich.
A firm with market power faces the following estimated demand and average variable cost functions:Qd = 39,000 - 500P + 0.4M - 8,000PRAVC = 30 - 0.005Q + 0.0000005Q2where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The firm expects income to be $40,000 and PR to be $2. Total fixed cost is $100,000. The firm should ________ because ________.
A. operate, P = $60.50 > AVC = $25.50 B. operate, P = $62 > AVC = $22 C. shut down, P = $62 < TVC = $229.50 D. operate, P = $62 > AVC = $17.50