The marginal cost of Alexa's Guide to Street People and Their Pets is constant at $5 . Alexa sells 5,000 copies per year at $20 per copy. She would like to increase readership and hold total profit constant. If the price goes to $15, how many copies must she sell?
a. 10,000
b. 9,000
c. 7,500
d. 6,000
c
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According to the Coase theorem, externalities
A. must usually be internalized by taxation or subsidy. B. can be internalized by the market under certain conditions. C. result when firms fail to maximize profits. D. cannot be internalized if property rights are assigned. E. are not relevant to the issue of market failure.
If oil prices fall at the same time that the federal government increases its purchases, in the short run
A) aggregate output and the price level will both increase. B) aggregate output will increase, but the price level will fall. C) aggregate output and the price level will both fall. D) aggregate output will increase, but the price level may either increase or decrease.
If you have a checking account at Citibank, the account is a liability of the bank
a. True b. False Indicate whether the statement is true or false
The multiplier for changes in government spending is calculated as
a. 1/(1+MPC). b. (1 - MPC)/MPC. c. 1/MPC. d. 1/(1 - MPC).