The market demand for MP3 player is p = 50 - 0.5Q, and the marginal cost for Nick to obtain and sell a MP3 player is $10
If he receives $12 for each MP3 player he sells from the store owner and the store owner controls the quantity of MP3's available for sale, then A) 40 MP3 players will be sold.
B) joint profit is $798.
C) joint profit will be maximized.
D) Nick will sell as many as he can.
B
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A firm's average total cost is $80, its fixed cost is $1000, and its output is 100 units. Its average variable cost
A) is less than $40. B) is between $40 and $60. C) is more than $60. D) cannot be determined without more information.
One difference between the federal government budget and state and local budgets is that
a. deficits in state and local governments average zero over longer periods of time. b. cyclical deficits are zero for state and local governments. c. state and local governments typically run surpluses. d. both a and b. e. none of the above.
Changing the price of good Y will
A. only affect the demand for that good. B. have effects across some markets. C. keep prices down in all markets. D. have no effect.
Government policy to reduce unemployment and increase national output can be illustrated by an
a. outward shift of the aggregate demand curve caused by an increase in government spending. b. outward shift of the aggregate supply curve caused by a reduction in government spending. c. inward shift of the aggregate demand curve caused by an increase in government spending. d. inward shift of the aggregate supply curve caused by a reduction in government spending.