Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko’s, a firm that specializes in producing men’s clothing. What will happen if the price of polo shirts decreases from $15 to $10?
A) consumers will buy no polo shirts.
B) the marginal cost of producing the third polo shirt will increase to $25.
C) producer surplus will fall from $13 to $3.
D) there will be a shortage of polo shirts.
Answer is C) producer surplus will fall from $13 to $3.
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The repo market is most closely related to the
A) federal funds market. B) Treasury bond market. C) Treasury note market. D) commercial paper market.
If the percentage change in quantity demanded of a good is smaller than the percentage change in price, consumers are very price sensitive to the price change of the good
a. True b. False Indicate whether the statement is true or false
Explain how the law of comparative advantage does benefits developing countries.
What will be an ideal response?
Firm A? High PriceLow PriceFirm BHigh priceA = $250A = $325??B = $250B = $200?Low priceA = $200A = $175??B = $325B = $175Refer to the above payoff matrix. If both firms collude to maximize joint profits, the total profits for the two firms combined will be:
A. $400 million. B. $500 million. C. $250 million. D. $350 million.