A firm is producing a joint product, Product A and Product B, with variable proportions. At its current production levels, the marginal benefit of producing Product A is $3 and the marginal cost is $2 and the marginal benefit of producing Product B is $4 and the marginal cost is $5. To maximize profits, the managers of the firm should produce ________ of Product A and ________ of Product B.
A) more; less
B) more; more
C) less; more
D) less; less
A) more; less
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Municipal bonds pay a relatively
a. low rate of interest because of their high default risk and because the interest they pay is subject to federal income tax. b. low rate of interest because of their low default risk and because the interest they pay is not subject to federal income tax. c. high rate of interest because of their high default risk and because federal taxes must be paid on the interest they pay. d. high rate of interest because of their low default risk and because the interest they pay is not subject to federal income tax.
You estimate that the income elasticity of demand for dairy products in the use is 0.20. If national income is predicted to decrease by 3%, what is the percentage change in dairy products expected (all else equal)?
a. +3% b. -3% c. + 0.6% d. - 0.6% e. Can't tell from the available information
The market price equals the equilibrium price if quantity demanded equals quantity supplied at the market price.
Answer the following statement true (T) or false (F)
Property rights for fish from the open ocean:
A. do not exist. B. are established by the United Nations. C. exist once the fish are sold at market. D. exist once the fish are caught.