Refer to Scenario 1-3. Had the firm not produced and sold the last 400 t-shirts, would its profit be higher or lower, and if so by how much?
A) Its profit would be $800 higher. B) Its profit would be $4,000 lower.
C) Its profit would be $4,800 higher. D) Its profit would be $800 lower.
A
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Which of the following is assumed to be constant along a demand curve for pet dogs?
a. the quantity of dogs demanded each time period b. the price of dogs c. the price of cats d. the number of dogs people want to buy
Exhibit 15-2 Aggregate demand and supply model
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Suppose the economy in Exhibit 15-2 is in equilibrium at point E1 and the marginal propensity to consume (MPC) is 0.75. Following Keynesian economics, the federal government can move the economy to full employment at point E2 by:
A. decreasing government tax revenue by approximately $33 billion. B. decreasing government tax revenue by $750 billion. C. increasing government tax revenue by $100 billion. D. increasing government tax revenue by approximately $33 billion.
Which of the following statements about featherbedding is correct?
A. It could increase production costs, resulting in higher prices for products. B. The quantity of labor demanded by firms could actually decrease. C. It could lead to a lower wage and smaller employment in the long run. D. All of these
If the equilibrium price of a good increases and the equilibrium quantity of the good decreases, we can conclude that:
A. demand increased. B. demand decreased. C. supply increased. D. supply decreased.