Given the total cost and total revenue curves in the figure above, what is the profit-maximizing output level?
A) 30,000 bushels
B) 60,000 bushels
C) 80,000 bushels
D) All output levels occur between 30,000 and 80,000 bushels are profit-maximizing output levels.
B
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Explain ways in which the government can remedy an externality
What will be an ideal response?
When the Fed lowers the growth rate of the money supply, it must take into account
a. only the short-run effect on production. b. only the short-run effects on inflation and production. c. only the long-run effect on inflation. d. the long-run effect on inflation as well as the short-run effect on production.
You are the manager of a theater. At present the theater charges the same admission price of $8 to all customers, regardless of age. You propose a two-tier pricing scheme: $5 for children under the age of 12 and $10 for adults. You tell your supervisor
that your proposal is likely to increase revenue. What must be true about the price elasticity of demand if your proposal is to achieve its goal of raising revenue? Explain your answer. What will be an ideal response?
An excess supply of euros will cause a depreciation of the euro.
Answer the following statement true (T) or false (F)