Suppose that a firm operating in perfectly competitive market sells 300 units of output at a price of $3 each. Which of the following statements is correct? (i) Marginal revenue equals $3. (ii) Average revenue equals $100. (iii) Total revenue equals $300
a. (i) only
b. (iii) only
c. (i) and (ii) only
d. (i), (ii), and (iii)
a
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Which type of unemployment is the consequence of downturns in the business cycle?
A) structural B) expansionary C) cyclical D) natural E) frictional
In 2008, Computers, Inc produced personal computers worth $20 million. If $16 million worth were sold and $4 million worth remained unsold at year end and were added to inventories, how much did Computers, Inc contribute to GDP in 2008?
a. $0 b. $4 million c. $12 million d. $16 million e. $20 million
Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the accompanying graph. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph.
Demand for the new drug is ________ while demand for one brand of the over-the-counter pain relievers is ________.
A. the vertical line at 100; the line labeled A B. the line labeled A; the line labeled B C. the horizontal line at $60; the line labeled B D. the line labeled B; the line labeled A
International trade exists because countries
A) can make themselves better off through trade. B) want to be neighborly with each other. C) want to be political allies. D) want to improve diplomatic relations with each other. E) want to avoid war with each other.