A computer manufacturer sells 1,000 units per month at $500 each. A price cut to $400 is being considered. His marginal cost is constant at $300 per unit. To maintain profits, quantity sold must increase to at least
A. 1,500
B. 2,000
C. 2,500
D. 3,000
Answer: B
You might also like to view...
Fill in the blank: According to the authors of your text, traffic congestion can be reduced by ________ the spillover costs associated with driving
A) modernizing B) estimating C) externalizing D) internalizing
Capital account transactions occur
A) when an U.S. company purchases goods from a foreign company. B) because of cross-border flows of financial assets. C) when you move money from one U.S. bank to another U.S. bank. D) when an U.S. citizen purchases stock in an U.S. corporation.
Suppose that for Jim the marginal benefit (MB) of producing is $60 and that the marginal cost (MC) of producing is $10. Suppose also that his marginal benefit of stealing is $50 and the marginal cost of stealing is $10. Is Jim currently maximizing utility in terms of producing and stealing? If not, should he produce more and steal less, or produce less and steal more to move toward utility
maximization? A) Yes, Jim is maximizing utility. B) No, Jim is not maximizing utility. Since the MB/MC ratio for producing is less than the MB/MC ratio for stealing, Jim should produce more and steal less. C) No, Jim is not maximizing utility. Since the MB/MC ratio for producing is greater than the MB/MC ratio for stealing, Jim should produce more and steal less. D) No, Jim is not maximizing utility. Since the MB/MC ratio for producing is greater than the MB/MC ratio for stealing, Jim should steal more and produce less.
Which of the following is a market imperfection that might explain persistent wage differentials within an occupation?
A. Geographical immobility of workers. B. Readily available information about job opportunities and pay. C. Principal-agent problems. D. Compensating wage differentials.