Suppose a monopolistic competitor produces 1,250 units of a good in equilibrium and charges a price of $7.50 for each unit. If the average total cost of producing 1,250 units of the good is $8, what is the total loss incurred by the producer?
A) $0.50
B) $500
C) $625
D) $1.50
C
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Maxine's Cookie Shop sells chocolate chip cookies in a perfectly competitive market for $2 per dozen. Maxine currently produces 200 dozen cookies per day and average total cost at this level of production is $1.75
What level of profit is this firm earning? Explain.
Into which category of aggregate expenditure would each of the following transactions fall?
a. Sandra MacMillian purchases a new Ford Focus. b. The city of Richardson buys 5 new garbage trucks. c. Adrian Garcia buys a newly constructed townhome. d. A consumer in Latvia orders an iPhone from Apple. e. Ford Motor Company buys 300 new iPhones from Apple.
Use the following table for a hypothetical single-product economy. year units of output price per unit price index (1=100) 1 10 10 100 2 12 20 200 3 15 30 300 4 20 40 400 Refer to the above data. Nominal GDP in year 4 is:
a) $320. b) $450. c) $225. d) $800.
The table below shows the quantity produced and the price set by a monopoly firm. Based on the table, the marginal revenue of the 28thunit of output is
A. $14.50 B. -$13.50 C. -$16.50 D. $16.50 E. $13.50