A firm with two plants, A and B, has the following estimated demand and marginal cost functions:Qd = 120 - 10PMCA = 4 + (1 / 5)QAMCB = 6 + (1 / 10)QBIn order to maximize profit, how many units of output should the firm produce?
A. 50
B. 15
C. 10
D. 45
E. 25
Answer: E
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An economy that experiences a fall in the price level over two consecutive quarters necessarily experiences
A) a recession. B) inflation. C) deflation. D) disinflation.
Measured as a share of GDP, the total government expenditures of the United States are
a. larger than any country in the world. b. smaller than any country in the world. c. smaller than the comparable figure for Japan and most Western European countries. d. larger than the comparable figure for Japan and most Western European countries.
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.
Figure 18.2Refer to Figure 18.2. In autarky, the maximum amount of spears that Macadamia can produce is:
A. 40. B. 100. C. 120. D. 160.