Suppose the market demand for milk is Qd = 150 - 5P. Additionally, suppose that a dairy's variable costs are VC = 2Q2 (where Q is the number of gallons of milk produced each day), its marginal cost is MC = 4Q and there is an avoidable fixed cost of $50 per day. In the long run there is free entry into the market. Suppose the demand for milk doubles. What is the new long-run equilibrium quantity?
A. 50
B. 60
C. 100
D. 120
C. 100
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What is the natural rate hypothesis?
What will be an ideal response?
Refer to the Article Summary. If the 12 nations that are a part of the TPP do agree to these stricter pharmaceutical patent laws as a way to increase intellectual property rights, all of the following would most likely occur except
A) more patents would be issued to pharmaceutical companies. B) pharmaceutical companies would increase investment in the development of more experimental drugs. C) fewer dollars would be spent on the development of new medicines. D) pharmaceutical companies would consider expanding operations to these TPP nations.
The optimal level of rights protection is _____
a. zero b. the marginal cost of additional protection equals the market price of the good c. the marginal cost of additional protection equals the marginal benefit of the good d. absolute
In the long run
a. all inputs are fixed. b. all inputs are variable. c. some inputs are fixed. d. production levels never change.