If the price of bread is zero and the price of cheese is positive, then the budget constraint between bread (on the horizontal axis) and cheese (on the vertical axis) would
a. be vertical.
b. coincide with the vertical axis.
c. coincide with the horizontal axis.
d. be horizontal.
d
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Refer to Cournot Problem. Total industry output will be
Consider a Cournot oligopoly with two identical firms. These firms each have constant marginal costs of $10. The market for these firms’ product has demand Q = 100 - P. a. 30 units. b. 45 units. c. 60 units. d. 90 units.
The principal danger to Japan in 2001 when the yen was appreciating was that this would
A. increase aggregate demand and make inflation worse. B. decrease aggregate demand and make the recession worse. C. decrease aggregate demand and make inflation worse. D. increase aggregate demand and make the recession worse.
Central planners in command economies
a. generally set production targets for firms. b. always consult consumers on the output of goods they want to consume. c. allow prices to organize the economy's production. d. depend upon the invisible hand to coordinate economic activities.
Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below.Acme Manufacturing: TC = 100 + 3Q Generic Industries: TC = 500 + 3Q Suppose that Acme and Generic face the same demand curve. If each firm produces its profit-maximizing level of output and earns a positive economic profit, then which of the following statements is true?
A. Generic will produce more output than Acme. B. Acme and Generic will produce the same quantity, but Acme will have higher profits. C. Acme will produce more output than Generic. D. Acme and Generic will produce the same quantity and will have the same profits.