Suppose a perfectly competitive firm is producing 77 units of output, and the marginal cost of the 77th unit is 11. If the firm can sell each unit of output for $8 and the firm's revenue is sufficient to cover its variable cost, the firm should:
A. decrease production.
B. lower its price.
C. raise its price.
D. increase production.
Answer: A
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International trade was not important to the industrializing U.S. since it was relatively rich in raw materials and land
Indicate whether the statement is true or false
The cross elasticity of demand for substitute products must:
a. be greater than one. b. be less than one. c. be zero. d. exceed zero. e. be negative.
Suppose the domestic supply (QSU.S.) and demand (QDU.S) for bicycles in the United States is represented by the following set of equations:QSU.S. = 2PQDU.S. = 200 - 2P.Demand (QD) and supply (QS) in the rest of the world is represented by the equations:QS = PQD =160 - P.Quantities are measured in thousands and price, in U.S. dollars.In the absence of international trade, ________ thousand bicycles will be sold in the United States at a per unit price of
A. 50; $50. B. 100; $100. C. 100; $50. D. 150; $50.
Why must caution be employed in comparing stock indexes across countries?
What will be an ideal response?