Suppose Ben owns a small company that makes kites. The market for kites is perfectly competitive, and kites sell for $25 each. Ben's total production costs vary depending on the number of kites he makes each day, as shown in the accompanying table.Number of kites Per DayTotal Cost Per Day ($)0100111021263148417252006235 What is Ben's economic profit at his profit-maximizing level of output?
A. ?$100
B. ?$73
C. ?$75
D. ?$72
Answer: D
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A) an agreement among competitors to regulate prices or output. B) a bond with no fixed maturity date. C) a contract between manufacturers and retailers. D) a highly leveraged buy-out. E) a shopping center in which all lessees pay the same percentage of common operating costs.
Under a fixed exchange rate regime, if the domestic currency is initially undervalued, that is, above par, the central bank must intervene to sell the ________ currency by purchasing ________ assets
A) domestic; foreign B) domestic; domestic C) foreign; foreign D) foreign; domestic
Behavioral economics helps explain:
A. why being selfish is rational. B. why people are selfish. C. the degree to which people are altruistic. D. why people are rational.
A reduction in interest rates by the Fed with the intention of reducing a recessionary gap is called:
A. monetary tightening. B. autonomous monetary policy. C. contractionary monetary policy. D. expansionary monetary policy.