If a customer values good A at $15, and it costs the firm $10 to produce, current profit per unit is
a. $10
b. $8
c. $5
d. $1
c
You might also like to view...
In the simple accelerator theory an increase in expected sales will
A) lead to an increase in net investment. B) not necessarily lead to an increase in net investment. C) lead to an immediate increase in replacement investment. D) lead to an increase in net investment in the following period.
Suppose that along the economy-wide rate-of-return line, the current interest rate of 8 percent causes a planned investment of $300 billion
Should the interest rate fall to 7 percent, the $300 billionth dollar of investment spending now generates a ________ rate of profit, which puts ________ pressure on investment. A) positive, downward B) positive, upward C) negative, downward D) negative, upward
It is possible for one person to have an absolute advantage in something even if she has no comparative advantage in anything
a. True b. False
The government regulates the banking industry by
a. conducting frequent audits and examinations. b. limiting the kinds of assets that a bank may own. c. limiting the quantity of some kinds of assets that a bank may own. d. All of the above are correct.