Refer to the graph shown. Currently, if this perfectly competitive firm is maximizing profit, the market price is:
A. $5.00 and marginal revenue for the firm is $3.00
B. $5.00 and marginal revenue for the firm is $5.00
C. $6.50 and marginal revenue for the firm is $6.50
D. $6.50 and marginal revenue for the firm is $5.00
Answer: B
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Forces inside a nation that cause people to think about leaving that nation are called what in migration theory?
What will be an ideal response?
Refer to the figure below. Suppose that the demand curve for barley can be characterized by the equation P = 100 - 2Q d . Suppose further that price was $10.00 and a $10.00 tax is imposed on the market.
(A) How many barleys would be purchased at a price of $10.00? After tax?
(B) What is the amount of tax revenue generated by the tax?
(C) How much excess burden is generated by the tax?
(D) What is the amount of consumer surplus before and after the tax? What is the difference in
consumer surplus? Is it equal to excess burden plus the tax revenue?
Which of the following is an example of a positive statement?
A) Since this good is bad for you, you should not consume it. B) If this good is bad for you, you should not consume it. C) If you consume this good, you will get sick. D) None of the above.
Refer to the above data. If the consumer has a money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing:
A) 2 units of J and 7 units of K. B) 5 units of J and 5 units of K. C) 4 units of J and 5 units of K. D) 6 units of J and 3 units of K.