A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 computers if she works 2 hours, 9 computers if she works 3 hours, and 10 computers if she works 4 hours. Pam cannot work more than 4 hours day. Each computer consists of a motherboard, a hard drive, a case, a monitor, a keyboard, and a mouse. The total cost of these parts is $600 per computer. If the firm sells each computer for $625, then how many hours a day should the firm employ Pam to maximize its net benefit from her employment?
A. 1 hour
B. 3 hours
C. 2 hours
D. 4 hours
Answer: B
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When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have
A) monopoly pricing. B) marginal cost pricing. C) price discrimination. D) price differentiation.
For a monopolist that produces in the short run and does not price discriminate, price always has to be
a. equal to marginal cost at the profit-maximizing quantity b. equal to marginal revenue at the profit-maximizing quantity c. greater than marginal cost at the profit-maximizing quantity d. less than marginal cost at the profit-maximizing quantity e. less than marginal revenue at the profit-maximizing quantity
Dividing the total cost of undertaking n units of an activity by n reveals the:
A. units per cost. B. average benefit. C. marginal cost. D. average cost.
The purpose of the IMF is to:
A. provide developing countries with short-term loans and technical assistance. B. determine monetary and fiscal policy in developing countries. C. determine exchange rates for developing countries. D. buy and sell the currencies of developing countries in order to stabilize their value.