If Martin sells a shirt for $40, and his producer surplus from the sale is $8, his cost must have been
a. $48.
b. $32.
c. $8.
d. $40.
b
You might also like to view...
Tastes for perfect substitutes are both homothetic and quasilinear.
Answer the following statement true (T) or false (F)
Martha Stewart earns $4,000 and she wants to save it for retirement, which is 10 years away. She can either save it in a taxable account or put it into a Roth IRA. Suppose that Martha can receive an annual rate of return of 8 percent and her marginal tax rate is 25 percent. By the time she reaches retirement, how much money would she have in either option? NOTE: Martha has to pay tax on the $4,000, so she cannot put the full amount into either the taxable account or the Roth.
What will be an ideal response?
If you have flipped a fair coin and tails has come up 49 times in a row, what are the odds that the next flip will be a head?
A) 1/50 B) 1/25 C) 1/2 D) 1 (100%)
According to the Taylor rule, if inflation rises 1 percent above a target rate of 2 percent, the Fed should raise the federal funds rate, relative to the current rate of inflation, by:
A. 0.5 percentage point. B. 1 percentage point. C. 1.5 percentage points. D. 2 percentage points.