You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 120 ? 6Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 2Q1 and MC2 = 4Q2. What price should be charged in order to maximize revenues?
A. 24
B. 60
C. 2
D. 6
Answer: B
You might also like to view...
The risk of making a loan is
A) earning profits that are too high and cause higher taxes. B) the risk that lender does not pay. C) the risk that the borrower does not pay. D) called "default risk" when taxes are not paid.
Refer to Figure 2-6. If the economy is currently producing at point D, what is the opportunity cost of moving to point B?
A) 8 thousand wrenches B) 30 thousand wrenches C) 23 thousand hammers D) 0 hammers
The financial crisis of 2007-2008 illustrated how important the integration of international financial markets could be in contributing to the spread of financial problems from one country to another. What solution is cited to curb the spread of financial problems from one country to another?
a. Better regulation of financial institutions to ensure prudent risk taking b. Lowering the fiscal budget c. Reducing international investment d. Paying off debts from the Federal Reserve e. Mitigating lack of government transparency
If real income increases,
a. there will be a rightward movement along a stationary money demand curve b. there will be a leftward movement along a stationary money demand curve c. the demand for money curve will shift rightward d. the demand for money curve will shift leftward e. there will be no movement of the demand curve for money and no movement along it