Refer to the profits-payoff table for a duopoly. If the firms are acting independently and firm X sets its price at $6, firm Y will achieve the largest profit by selecting:
A. a price higher than $6.
B. a price between $5 and $6.
C. $6.
D. $4.
D. $4.
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Suppose the economy is operating below its full employment level. The Fed
A) can move the economy toward the full employment level by expanding the money supply to increase aggregate supply. B) can move the economy toward the full employment level by expanding the money supply to increase aggregate demand through both its direct and its indirect effects. C) can move the economy toward the full employment level by expanding the money supply to increase aggregate demand and to hold prices constant. D) is powerless to affect either aggregate demand or aggregate supply. Fiscal policy is needed.
Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5 and the wage rate is $37.50 per day, how many workers should Winnie employ to maximize his profit?
A) 2 B) 3 C) 4 D) 5
Average total cost is found by subtracting AFC from AVC
Indicate whether the statement is true or false
The Congressional Budget Office estimates that the Patient Protection and Affordable Care Act (ACA) will increase government spending
A) by more than the additional taxes and fees enacted under the law will bring in. B) by less than $50 billion over the next decade. C) by about $2 trillion over 10 years. D) by more than $20 trillion dollars over the next 5 years.