The above figure shows Katie's consumption possibilities. The relative price of a movie ticket is
A) 1 restaurant meal.
B) 0.25 restaurant meals.
C) 4 restaurant meals.
D) 2 restaurant meals.
B
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If a nation has a higher level of technology than another nation it means that they will be able to produce:
A. more outputs with the same inputs. B. less with the same amount of physical capital. C. more with no capital. D. the same output with the same level of inputs.
A decrease in the discount rate:
a. increases reserve holdings of the commercial banks. b. leads to an increase in the interbank rate charged by commercial banks. c. lowers the cost of borrowing from the Fed. d. causes an increase in the federal funds rate. e. decreases the money supply.
If, as price increases by 10 percent, total revenue decreases by 10 percent demand is
a. elastic. b. unit elastic. c. inelastic. d. perfectly inelastic.
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 ? 15Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 3Q1 and MC2 = 2Q2. What price should be charged to maximize profits?
A. $60.5 B. $20.5 C. $40.5 D. $80.5