A risk-neutral monopoly must set output before it knows the market price. There is a 50 percent chance the firm's demand curve will be P = 20 ? Q and a 50 percent chance it will be P = 40 ? Q. The marginal cost of the firm is MC = Q. The expected profit-maximizing price is:
A. $20.
B. $10.
C. $15.
D. $5.
Answer: A
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The technology-based effluent limitations
a. are performance-based standards b. do not make distinctions based on the age of the industrial facility c. are applicable only to nonpoint polluting sources d. have been eliminated from U.S. water quality policy
Suppose there is a reduction in the saving rate. This decrease in the saving rate will cause a reduction in which of the following once the economy reaches its new steady state equilibrium?
A) growth rate of output B) growth rate of capital C) growth rate of capital per worker D) all of the above E) none of the above
Tippi received a rebate of $2,000 for a hybrid car she purchased in May 2016. Tippi put this money in a saving account so that she could spend it when she went on safari in September 2016. This is an example of money serving as a(n)
A. store of value. B. investment good. C. medium of exchange. D. unit of account.
When a consumption schedule is plotted as a straight line, the slope of the consumption line is:
A. Vertical B. Horizontal C. Greater than the slope of the 45° line D. Less than the slope of the 45° line