Refer to the data. If product price is $60, the firm will:
A. shut down.
B. produce 4 units and realize a $120 economic profit.
C. produce 6 units and realize a $100 economic profit.
D. produce 3 units and incur a $40 loss.
C. produce 6 units and realize a $100 economic profit.
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What role does foreign direct investment play in international transfer of technology?
What will be an ideal response?
Suppose that John allocates $10,000 of his disposable income for necessities. Any additional income beyond that is both spent and saved. Assume he has a disposable annual income of $50,000 and an MPC=0.8. Based on this information the additional amount spent on non-necessities should be:
A. $10,000. B. $40,000. C. $32,000. D. $35,000.
The existence of interdependence among firms in an oligopoly market
A. allows the analysis of the market through standard approaches. B. results in a monopoly outcome under virtually all circumstances. C. increases entry into the market. D. results in a great deal of difficulty in analyzing the behavior of firms.
In a competitive market without intervention, pure public goods would be
A. produced but at inefficiently high quantities. B. produced but at inefficiently low quantities. C. freely available. D. not produced.