A firm has capacity limitations and charges $30 for its service during daily peak times. If the market demand elasticity drops from ?3 during peak times to ?5 at off-peak times, how much should the firm charge to earn the maximum profit during off-peak times?
A. $20
B. $24
C. $21
D. Not enough information to determine
Answer: D
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A commodity is ____ if it is used up when someone consumes it
a. marginal b. scalable c. depletable d. replaceable
Rational expectations are forecasts
A. that, while not necessarily correct, are the best that can be made given the available data. B. that are technically correct. C. that accurately predict the short-term trade-off between inflation and unemployment. D. made by economists using the most sophisticated econometric models.
Giuseppe's Pizza is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price is $20, what is Giuseppe's profit-maximizing output?
A) 2 pizzas per hour B) 3 pizzas per hour C) 4 pizzas per hour D) 0 pizzas per hour
If you are using a 95% confidence interval and the absolute value of the t-statistic is larger than the critical value, then
A) we accept the null hypothesis at a 95% confidence level. B) we reject the null hypothesis at a 95% confidence level. C) we will be wrong less than 5% of the time if we accept the null hypothesis. D) we will be wrong 95% of the time if we reject the null hypothesis.