You are the manager of a firm that sells its product in a competitive market at a price of $60. Your firm's cost function is C = 50 + 3Q2. Your firm's maximum profits are:
A. 450.
B. 250.
C. 400.
D. 500.
Answer: B
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If the Fed makes an open market purchase of $1 million of government securities, the monetary base
A) is unchanged in size, though its composition changes. B) will decrease by a multiple of $1 million over time. C) will increase by a multiple of $1 million over time. D) is decreased by $1 million. E) is increased by $1 million.
The "Okies" were associated with each of these EXCEPT
A. the Dust Bowl. B. John Steinbeck's The Grapes of Wrath. C. the Great Depression. D. the rust belt.
Consider the following information for a simultaneous move game: If you advertise and your rival advertises, you each will earn $5 million in profits. If neither of you advertises, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $15 million and the non-advertising firm will earn $1 million. If you and your rival plan to be in business for 10 years, then the Nash equilibrium is:
A. for each firm to advertise in early years, but not advertise in later years. B. for each firm to not advertise in any year. C. for neither firm to advertise in early years, but to advertise in later years. D. for each firm to advertise every year.
Negative externalities from energy production should be considered when comparing the cost of an energy source because they:
A. Improve energy production B. Reduce the total costs of production C. Are an additional cost of using that source D. Are taxed or subsidized by government to encourage production