A monopolist faces a demand curve given by P = 20 - Q and has total costs given by TC = Q2. By using a bit of calculus, you should be able to determine that the firm's marginal revenue is MR = 20 - 2Q and its marginal cost is MC = 2Q. What is its profit-maximizing price?
a. $20
b. $15
c. $10
d. $5
Ans: b. $15
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With tied aid
(a) MNC investment depends on tax concessions. (b) aid recipients must use the aid to purchase goods and services from the donor. (c) aid recipients must follow World Bank/IMF conditionality. (d) all of the above.
Which of the following is not an example of foreign aid?
a. U.S. discount department stores purchasing toys from Chinese manufacturers b. The International Monetary Fund extending loans to countries that have trouble with their balance of payments c. The World Bank providing loans and grants to support health and education programs d. The U.S. government paying to build an electricity plant in Albania e. The Australian government paying to repair highways in Tonga
GDP measures
A. the market value of final products produced in the nation during the year.
B. the sum of the market value of final products produced and imported during the year.
C. the market value of intermediate products produced during the year.
D. the sum of the market value of both final and intermediate products produced during the year.
Which of the following statements is NOT true about the price system?
A) The price system allows resources to flow from low-valued uses to high-valued uses. B) Firms have total control over what consumers can buy. C) Individuals have freedom to purchase what they want. D) The price system allows for economic efficiency.