Once a firm has determined the quantity of output it wishes to sell, the maximum price it can charge for each unit is determined by:
A. the demand curve facing the firm.
B. the average cost of making the product.
C. the marginal cost of making the product.
D. the firm's marginal revenue curve.
Answer: A
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Use the aggregate expenditures model and the following values to answer the next question.AMPCIGT$3500.75$400$400$200Determine equilibrium consumption for this economy.
A. $3,350 B. $3,200 C. $3,000 D. $2,850
In a 2-good model, suppose that all individuals have tastes that are quasilinear in either good 1 or in good 2 (with some of each represented in the group.) The quasilinearity of everyone's tastes is then sufficient to insure that we can treat the group as if it were a single representative consumer.
Answer the following statement true (T) or false (F)
The market demand for MP3 player is p = 50 - 0.5Q, and the marginal cost for Nick to obtain and sell a MP3 player is $10. If he signed a fixed-fee rental contract with the store owner and pays $1000 as the rent,
A) Nick will sell 20 MP3 players. B) Nick will sell 40 MP3 players. C) Nick will sell 50 MP3 players. D) Nick will not sign the contract.
In which of the following situations is expansionary monetary policy most effective?
A. The Fed raises the reserve requirement. B. The Fed sells more securities. C. The Fed raises the discount rate. D. Banks are willing to lend excess reserves.