Suppose that a producer’s supply curve is estimated to be P = 15 + 3Q and that the product is sold at P = $45. At this price level, the firm’s producer surplus is
a. $2250 b. $150 c. $300 d. $10
b. $150
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All of the following are characteristics of a battle of the sexes game except
A) each player has a tough strategy and a weak strategy. B) the tough strategy and the weak strategy differ for each player. C) each player prefers the Nash equilibrium corresponding to his or her tough strategy. D) each player prefers the same Nash equilibrium.
An increase in shipments of currency from the Federal Reserve to commercial banks will
A) increase the money supply. B) increase bank reserves. C) reduce bank reserves. D) have no effect on bank reserves.
Refer to the figure below. Suppose the original before-tax demand curve for CD players is P = 100 - 2Q d . Suppose further that supply is P = 5 + 3Q s . Now suppose a $5 unit tax is imposed on consumers.
(A) What is the before-tax equilibrium price and quantity?
(B) What is the after-tax equilibrium price and quantity?
(C) How much tax revenue is raised?
The two most important actors of the economy are:
A. land and capital. B. households and firms. C. firms and capital. D. exports and imports.