Tammy sells woolen hats in a perfectly competitive market. The marginal cost of producing 1 hat is $24. The marginal cost of producing a second hat is $26 and the marginal cost of producing a third hat is $28. The market price of a hat is $26
To maximize profit, Tammy produces ________ per day. A) 1 hat
B) 3 hats
C) 2 hats
D) as many hats as possible
C
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Use the following table, which shows the demand schedule faced by Ninaskets, a pure monopoly selling baskets, to answer the next question.PriceNumber of Baskets Sold$203185167141012151030What is the change in total revenue if the pure monopoly raises the price from $10 to $12?
A. +$120 B. -$300 C. -$120 D. +$300
Net profit after taxes per dollar of assets is a basic measure of bank profitability called
A) return on assets. B) return on capital. C) return on equity. D) return on investment.
The increased stability of the financial system in the United States since 1950 can help explain
A) why the United States has only experienced one recession since 1950. B) the severity of the 2007-2009 recession. C) the increase in the gap between potential GDP and real GDP. D) the decrease in severity of business cycle fluctuations.
In an increasing cost industry, an increase in industry output will
A) lead to a higher market price. B) lead to a lower market price. C) shift each firm's average fixed cost curve down. D) shift each firm's short run supply curve down.