In order to maximize profit, a firm that produces its output in two plants will produce the level of total output at which the last unit of output produced adds the same amount to total revenue as to the
A. second plant's total cost.
B. first plant's total cost.
C. firm's total cost
D. both a and b
Answer: C
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Refer to the figure below. Based on the diagram, the nominal interest rate equals ________ and the money supply equals ________. 
A. 7%; 300 B. 5%; 500 C. 1%; 500 D. 3%; 700
Refer to the information below. If the firms' managers form a price -fixing cartel that maximizes the firms' total profit, what is price charged in the market?
A small nation has three gasoline suppliers with a linear monthly market demand equal to: Q = 500,000 - 5P. Each firm's marginal cost (MC) and average total cost (ATC) curves are horizontal at $10,000 per month. A) $100,000 B) $10,000 C) $55,000 D) $5,500
Wealth creating transactions are less likely to occur
a. Without private property rights b. Without contract enforcement c. Both a and b d. None of the above
Flexible, or floating, exchange rate is determined by the:
a. World Bank. b. forces of supply and demand. c. price of gold. d. Federal Reserve.