You are the manager of a firm that sells its product in a monopolistically competitive market with (inverse) demand given by P = 50 ? 0.5Q. Your firm's cost function is C = 40 + 5Q2. Your firm's marginal revenue is:
A. MR = 100 ? Q.
B. MR = 50 ? 0.5Q.
C. MR = 50 ? Q.
D. There is insufficient information to determine the firm's marginal revenue.
Answer: C
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When income increases from $20,000 to $30,000 the number of home delivered pizzas per year increases from 22 to 40. The income elasticity of demand for home delivered pizza equals
A) 1.45. B) 0.69. C) 0.58. D) 0.40. E) 2.86.
The GDP deflator is designed to adjust nominal GDP for changes in
a. the level of transfer payments. b. the quality of goods over time. c. the costs of economic bads such as pollution and crime. d. the general level of prices over time.
The price of a good will fall when:
A. there is a shortage of the good. B. there is a surplus of the good. C. demand for the good increases. D. the supply of the good decreases.
Which one of the following depicts an accurate description of the household survey and the establishment? survey?
What will be an ideal response?