The above graph shows the demand and cost conditions facing a price-setting firm. What is the maximum amount of profit the firm can earn? a -$180
A. $120
B. -$80
C. $60
D. none of the above
Answer: C
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Identify the correct statement
a. As domestic income rises, imports rise and net exports fall. b. As foreign income rises, net exports fall. c. As domestic income falls, imports rise and net exports fall. d. As domestic income rises, imports fall and net exports rise. e. As foreign income falls, net exports rise.
A monopolist in the radio industry has two radio-making plants. The marginal cost of radio production by Plant A is $4Q (where Q is the number of radios produced) and the marginal cost of radio production by Plant B is always $16 . If the demand curve for radios is downward sloping, the monopolist will
a. never produce radios at Plant A. b. always produce four times as many radios at Plant B as at A. c. never produce more than four radios at Plant A. d. produce radios at Plant A only as a last resort.
The Red Jacket Mountain View Inn in New Hampshire charges $150 per room in the winter ski season and $90 during the summer months. The number of rooms and operating costs are constant year round.Which of the following best explains the price difference?
What will be an ideal response?
Enron's bankruptcy is much more troubling than Kmart's or Global Crossing's because
A. Enron was much bigger. B. Enron had more stockholders. C. Enron had more employees. D. Enron's trouble resulted from corrupt accounting practices.