If he estimates that the industry supply function for computers in the town is P = 700 + .5Q, how many computers will be sold at equilibrium and at what price would the producers be selling?
Ans: By setting supply equal to demand and solving for Q the quantity sold is 1200. Putting quantity back into the demand equation gives a price of $1,300.
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Refer to Scenario 10.8. Suppose that the regulatory agency sets your price where average revenue equals average cost. How much profit will Adriana make?
A) She will lose money and will go out of business. B) She will break even. C) She will make a profit. D) none of the above
Supplier power tends to be low when
a. The supplier provides critical inputs b. The supplier provides homogenous inputs c. Both A&B d. None of the above
National income
a. includes gross private domestic investment b. is the sum of all payments made to resource owners for the use of their resources in production c. includes all consumption expenditures d. is measured by C + I + G + (X – M) e. does not include proprietors' income
Assume that national income = $4,000 . C = $500 + 0.80(Y), and intended investment = $200 . Then all of the following are true except
a. saving at Y = $0 is -$500 b. national income will increase c. there will be $100 of unplanned investment in inventories d. actual investment will equal $300 e. production will decrease