Suppose you inherit the only spring of mineral water in an area and want to maximize profits from this costless product. You would ask your customers to bring their containers with them and:
a. charge them the highest price possible to sell some output.
b. charge them the lowest price possible to sell as much as you can.
c. ask them how much they would like to pay and accept it.
d. charge the price at which MR is zero.
e. charge the price at which MR is maximum.
d
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Refer to Figure 11-11. In the short run, if the firm sells fewer than 5,000 picture frames per month
A) it should produce with the scale of operation associated with ATCc. B) it should produce with the scale of operation associated with ATCa. C) it should produce with the scale of operation associated with ATCb. D) it will experience constant returns to scale.
If disposable income increases by $500 million, and consumption increases by $400 million, then the marginal propensity to consume is
A) 1.25. B) 0.8. C) 0.6. D) 0.4.
Yuan recently completed his college degree and is entering the labor market for the first time. He has been submitting applications and has been interviewed twice in the last two weeks, but so far has not found a job. Yuan would be classified as
a. frictionally unemployed b. seasonally unemployed c. structurally unemployed d. cyclically unemployed e. not yet in the labor force
Government growth has been caused by
A. citizens who want larger government. B. lots of public lands available in the West. C. increases in privatization. D. inflation.