If a monopolistically competitive firm is producing 50 units of output where marginal cost equals marginal revenue, total cost is $1,674 and total revenue is $2,000, its average profit is
A) $326.
B) $40.
C) $6.52.
D) impossible to determine without additional information.
Answer: C
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Money is "created" when
A. a depositor deposits money at the bank. B. people use money to pay for stuff they buy from one another. C. someone lends money to a friend or a family member. D. a bank grants a loan to a customer.
In 2014, global revenue for IBM was $2 billion lower when measured in dollars than when measured in local currencies. The reason for this discrepancy is the value of the
A) euro decreased relative to the British pound. B) U.S. dollar decreased relative to the Japanese yen. C) British pound increased relative to the U.S. dollar. D) U.S. dollar increased relative to most other currencies.
Appendix: In Dutch auctions, the bidding
a. starts low and rises until the highest bidder wins. b. is done in secret "sealed bids" which are opened at a specified time. c. begins with a very high price, and is reduced until the first person takes it. d. is accomplished by giving the price of the second highest bid to the highest bidder.
The "crowding-out effect" suggests that
A. government spending is increasing at the expense of private investment. B. imports are replacing domestic production. C. private investment is increasing at the expense of government spending. D. consumption is increasing at the expense of investment.