Refer to Scenario 1-1. Had the firm not produced and sold the last 3,000 cell phones, would its profit be higher or lower, and by how much?
A) Its profit will be $6,000 lower. B) Its profit will be $700 lower.
C) Its profit will be $700 higher. D) Its profit will be $6,700 higher.
C
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The figure above shows Freda's PPF. Freda currently produces 10 packets of fudge and no cookies. If Freda decides to produce 1 packet of cookies, her opportunity cost of the packet of cookies is ________ of fudge
A) 1 packet B) 1/2 packet C) 2 packets D) 0 packets
A Giffen good could be either a normal good or an inferior good
Indicate whether the statement is true or false
Which of the following does NOT contribute to the choice of a policy of hyperinflation?
A) war B) increased price of energy paid to foreigners C) price of export commodities increase D) diminished ability to collect taxes
If inflation rises or falls faster than people forecast in the short run but not in the long run, what are the shapes of the Phillips curves?
a. The Phillips curve is vertical in the short run, and upward sloping in the long run. b. The Phillips curve is downward sloping in the short run, and vertical in the long run. c. The Phillips curve is upward sloping in the short run, and horizontal in the long run. d. The Phillips curve is vertical in the short run and long run.