If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then maximum profit
A) equals $336.
B) equals $882.
C) equals $1,218.
D) cannot be determined solely from the information provided.
D
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A mobile phone is a
a. private good. b. club good. c. common resource. d. public good.
Red wine has just been found to increase your expected life span by 5 years if you eat it every day. In the market for red wine, this information will lead to
A) an increase in price and a decrease in quantity. B) an increase in price and an increase in quantity. C) a decrease in price and a decrease in quantity. D) a decrease in price and an increase in quantity.
Suppose that real GDP is initially $100 trillion and the government attempts to increase real GDP to $101 trillion. The marginal propensity to consume is 0.75, and every $1.00 increase in real government spending crowds out $0.50 in real planned investment expenditures. How much increase in real government spending could lead to the desired level of real GDP?
A. $500 billion B. $0 C. $250 billion D. $100 trillion
Dollar Bank is currently loaned up. If the required reserve ratio is lowered
A. Dollar Bank will have excess reserves that it can lend out. B. Dollar Bank's net worth will increase. C. Dollar Bank will still be loaned up because it did not receive any additional deposits. D. Dollar Bank's actual reserves will increase, but it will still be loaned up.