Refer to the figure above. What is the change in total revenue due to a price reduction from $6 to $4?
A) The total revenue increases by $300.
B) The total revenue decreases by $600.
C) The total revenue increases by $200.
D) The total revenue increases by $600.
C
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Refer to Scenario 7.2. Suppose that you receive an order for 60 earthquake detectors. How much labor will you use to minimize the cost of 60 earthquake detectors?
A) 1 B) 5 C) 10 D) 45 E) none of the above
The following table shows four firms, the amount each pollutes, the marginal cost for each firm to clean up pollution, and the total cost to each firm of eliminating all pollution.FirmTotal Discharge (in tons)Marginal Cost of Cleanup(per ton)Total Cost of CleanupA60$5.00$300B70$8.00$560C80$7.50$600D90$4.00$360The total discharge of these four companies is 300 tons. Assume there is no one else who pollutes and these firms want to maximize profits. If the government wishes to cut discharge by 50 percent, it could do so by establishing an effluent fee of:
A. $5.50 per ton. B. $10.00 per ton. C. $3.00 per ton. D. $4.50 per ton.
The __________ theory holds that people will expect fiscal and monetary policies to have certain effects and that they will take actions that make these policies ineffective.
Fill in the blank(s) with the appropriate word(s).
Other things being constant, if the U.S. real rate of interest exceeds that of its trading partners, we expect
A) political instability in the United States. B) a worsening of the U.S. balance of payments. C) an appreciation of U.S. currency. D) that a "dirty float" will emerge.