In the above figure, what is the profit-maximizing output and price?
A) 8, $7
B) 10, $8
C) 12, $10
D) 10, $10
D
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Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all of its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. We can conclude that
A. Alpha should specialize in Y and Beta in X. B. the terms of trade will be 3X equals 1Y. C. Alpha should specialize in X and Beta in Y. D. there is no basis for mutually beneficial specialization and trade.
Economist Robert Fogel has estimated that by the year 2040, individuals in the United States will be spending
A) more time in the workforce and more time in leisure activities than they do today. B) less time in the workforce and less time in leisure activities than they do today. C) more time in the workforce and less time in leisure activities than they do today. D) less time in the workforce and more time in leisure activities than they do today.
When a profit-maximizing firm makes a decision to employ a worker, that decision is based on: a. the individual contribution that the worker makes to the profit of the firm. b. the average productivity of the firm's labor force
c. the familial relationship between the employer and the employee. d. the total output produced by the firm.
Suppose the government decides to increase taxes by $50 billion and to increase transfer payments by $50 billion. What effect would there be on aggregate demand?
A. $50 billion increase. B. More than $50 billion increase after the multiplier effect. C. $50 billion decrease. D. No impact.