Suppose that a competitive firm's marginal cost of producing output q is given by MC = 5 + 2q. Assume that the market price of the firm's product is $27. What level of output will the firm produce?
What will be an ideal response?
MC = P so 27 = 5 + 2q, then Q* = 11.
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The contribution of ________ to federal tax receipts is larger than the contribution of ________
A) personal income taxes; corporate income taxes B) corporate income taxes; payroll taxes C) corporate income taxes; personal income taxes D) excise taxes; social insurance taxes
Many economic variables are classified according to their relation to the business cycle. What are the principal categories? Variables in which category(ies) are of greatest help in forecasting changes in the economy?
What will be an ideal response?
Consumer theory provides the foundation for understanding demand curves because
a. each point on a demand curve represents an optimal choice point. b. consumers purchase more inferior goods than normal goods. c. increases in income cause the budget constraint to rotate inward along one axis, which changes the consumer's purchases. d. increases in income cause the budget constraint to rotate outward along one axis, which changes the consumer's purchases.
The duration of a recession is measured from:
A. trough to peak. B. peak to trough. C. trough to trough. D. peak to peak.