If there are no costs in selling mineral water what price should a profit maximizer charge?
What will be an ideal response?
The $5 price is the best since total revenue is maximized at that point.
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Which of the following statements about U.S. inflation is not correct?
a. Low inflation was viewed as a triumph of President Carter's economic policy. b. There were long periods in the nineteenth century during which prices fell. c. The U.S. public has viewed inflation rates of even 7 percent as a major economic problem. d. The U.S. inflation rate has varied over time, but international data show even more variation.
Which of the following is an example of a factor payment?
a. The U.S. government pays Sunset Farms a subsidy of $1 million per year. b. Yves is an entrepreneur who earns a profit of $2 million for putting capital together for a firm. c. Alchemy Chemicals uses $500,000 to replace worn out equipment. d. Healthy Grocers pays $750,000 to increase its stock of organic preserves.
Refer to the graph shown that depicts a third-party payer market for prescription drugs. What happens to total expenditures in this market if a $2 co-pay is established compared to a free-market equilibrium?
A. Expenditures fall by $120 B. Expenditures rise to $270 C. Expenditures remain at $120 D. Expenditures rise to $240
The government uses the buying power of wages rather than face value or nominal value in reporting changes in "real wages" in the economy.
Answer the following statement true (T) or false (F)