An individual competitive firm:
a) Can raise its price to increase profit.
b) Has a large advertising budget.
c) Can alter the market price of the good(s) it produces.
d) Produces a small portion of output relative to the market.
Answer: d) Produces a small portion of output relative to the market
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A firm has a fixed cost of $700 in its first year of operation. When the firm produces 99 units of output, its total costs are $4,000 . The marginal cost of producing the 100th unit of output is $200 . What is the total cost of producing 100 units?
a. $42 b. $900 c. $4,200 d. $4,900
Suppose that the country of France has a 22% nominal interest rate and an expected inflation rate of 10%. Which of the following is the best estimate of the Real interest Rate in the country?
A. 2.2% B. 22% C. 12% D. 10% E. Not enough info.
Refer to Figure 9-4. Under autarky, the equilibrium price is
A) $54. B) $30. C) $0. D) $24.
In the binary dependent variable model, a predicted value of 0.6 means that
A) the most likely value the dependent variable will take on is 60 percent. B) given the values for the explanatory variables, there is a 60 percent probability that the dependent variable will equal one. C) the model makes little sense, since the dependent variable can only be 0 or 1. D) given the values for the explanatory variables, there is a 40 percent probability that the dependent variable will equal one.