Refer to Figure 12-5. What is the minimum price the firm requires to produce output?
A) $20 B) $14
C) $5 D) It cannot be determined
C
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In the coordination failure model, we mention sunspots because
A) they influence business cycles. B) apparently irrelevant events may influence business cycles. C) in central banker speak, they are synonymous with open market operations. D) seasonal sunshine has an impact on the business cycle.
For each of the following cost functions, find MC, AC, and AVC
a. TC = 20,000 + 10 Q b. TC = 18,000 + Q + 0.2 Q2
The government proposes a tax on flowers in order to boost its revenue. Consumers will bear all of this tax if the:
a. demand for flowers is perfectly inelastic. b. supply of flowers is perfectly inelastic. c. demand for flowers is perfectly elastic. d. demand for flowers is unit elastic.
An increase in the price of blue pens will increase both the equilibrium price and quantity in the market for black pens
a. True b. False Indicate whether the statement is true or false