Accounting profit is defined as
a. total revenue minus opportunity cost
b. total revenue minus all costs of production
c. total revenue minus explicit costs
d. the sum of marginal revenues received from all units produced
e. the difference between marginal revenue and marginal cost
C
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According to the quantity theory of money, what is the effect of an increase in the quantity of money?
What will be an ideal response?
Assume that the market clearing price for a shirt is $20, but that the maximum price that can be charged is $15. This is an example of
A) a price control that will lead to a surplus of shirts on the market. B) a price floor that will lead to a shortage of shirts on the market. C) markets failing to ration a fixed quantity of a good. D) a price ceiling that will likely lead to a shortage of shirts on the market.
Last year a country had exports of $50 billion, imports of $60 billion, and domestic investment of $40 billion. What was its saving last year?
a. $30 billion b. $20 billion c. $10 billion d. -$10 billion
Exhibit 9-7 Two-Firm Payoff Matrix
?
Suppose costs are identical for the two firms in Exhibit 9-7. If both firms assume the other will compete and charge a lower price, equilibrium will be established by:
A. Camel charging the high price and Marlboro charging the high price. B. Camel charging the low price and Marlboro charging the low price. C. Camel charging the low price and Marlboro charging the high price. D. Camel charging the high price and Marlboro charging the low price.