If a fishing boat owner brings 10,000 fish to market and the market price is $7 per fish, she will have $70,000 in total revenue. If the average variable cost of 10,000 fish is $4 and the fixed cost of the boat is $20,000, what is her profit?
A. $3.
B. $1,000.
C. $3,000.
D. $10,000.
Answer: D
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A. marginal cost, marginal revenue, product, and price. B. average product, average cost, long run, and short run. C. land, labor, capital, and business know-how. D. perfect competition, monopolistic competition, oligopoly, and monopoly.
If, holding the strategies of all other firms constant, no firm can obtain a higher profit by choosing a different strategy, then
A) the firms are using the Cournot model. B) the firms' strategies are a Nash equilibrium. C) the firms must have formed a cartel. D) the firms are using the Bertrand model.
If price decreases and demand is ________ then total revenue will decline
a. perfectly elastic b. inelastic c. unit elastic d. elastic
If the Fed buys $10 million dollars in government securities, and the required reserve ratio is 20 percent, the banking system is able to expand the money supply by:
A. $10 million. B. $50 million. C. $2 million. D. $40 million.