Sweet Husks is a perfectly competitive corn farm. Currently, the expected price of an ear of corn is $0.40 and, at its current production level, Sweet Husks has a marginal cost of $.30 per ear. Which of the following is true regarding Sweet Husks?
A) Sweet Husks is maximizing expected profit.
B) To maximize expected profit, Sweet Husks should increase production.
C) To maximize expected profit, Sweet Husks should decrease production.
D) The expected profit from producing another ear of corn is negative.
B) To maximize expected profit, Sweet Husks should increase production.
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a. they loose that portion of the credit b. they are allowed to apply it towards future tax liabilities c. it is refunded at a 50 percent rate d. it is refunded at a 100 percent rate
Which of the following summarizes the Fisher Effect?
A. Nominal interest rates will rise with unexpected inflation. B. Nominal interest rates will rise with expected inflation. C. Real interest rates will rise with unexpected inflation. D. Real interest rates will rise with expected inflation.
If your total revenue is $10 million, your variable costs are $8 million, and your fixed costs are $20 million, in the short run you will
A. operate. B. shut down. C. go out of business.
If the real marginal tax rate increases in the market clearing model then:
a. the supply of labor decreases. b. real output, Y, declines. c. the demand for capital decreases. d. all of the above.