A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results:Qd = 25,000 ? 5,000P + 25MQs = 240,000 + 5,000P ? 2,000PIwhere P is price, M is income, and PI is the price of a key input. The forecasts for the next year are 
= $15,000 and 
I = $20. Average variable cost is estimated to beAVC = 14 ? 0.008Q + 0.000002Q2Total fixed cost will be $6,000 next year. What is the profit-maximizing output choice for the firm?
A. 4,000 units
B. 6,000 units
C. 5,000 units
D. 3,000 units
Answer: D
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When the Fed purchases federal government bonds in the open market
A) the demand for money expands. B) there is no change in the money supply. C) the money supply expands. D) the money supply contracts.
In game theory, the strategy that always yields the highest benefit for the player using it is the
A) dominant strategy. B) cooperative strategy. C) prisoners' strategy. D) matrix strategy.
The second largest source of income for the federal budget is:
a. personal income taxes. b. corporate income taxes. c. payroll taxes. d. inheritance taxes.
Refer to the accompanying figure. Which of the following is true?
A. Points B, C, E and F are efficient. B. Point F is the most efficient because medical care is the highest there. C. Point D is efficient because it requires using the fewest resources. D. Point A is efficient because it is farthest from the origin.