Refer to the table below. If Tacos R Us sells its taco shells separately, what is the profit-maximizing price to charge?
Tacos R Us sells two different types of products; taco shells and taco sauce. For simplicity, assume that the marginal cost of each product is $0, so that Tacos R Us' total revenue is also its total profit.
A) $5
B) $3
C) $7
D) $4
D) $4
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In a steady-state economy with no population growth, consumption per worker is 45, the saving rate is 25 percent, and the depreciation rate is 15 percent. The level of capital per worker is ________
A) 75 B) 36 C) 100 D) 27
For firms that sell one product in a perfectly competitive market, marginal revenue is:
A. equal to market price. B. the additional revenue gained from selling one more unit. C. equal to average revenue. D. All of these are true.
Information problems create inefficient outcomes in:
A. the private sector but not the public sector. B. the public sector but not the private sector. C. neither the private nor the public sector. D. both the private and the public sectors.
Under oligopoly, there are
A. so many firms that no one can control the price. B. low barriers to entry. C. identical products. D. high barriers to entry.