This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.PriceQuantityTC$500$10.00$501$20.00$502$27.50$503$77.50$504$147.50$505$250.00According to the table shown, the firm's profit is:
A. maximized at 5 units of output.
B. not maximized at any level of output given.
C. maximized at 4 units of output.
D. maximized at 3 units of output.
Answer: D
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Given an MPC of 0.8, if there are no income taxes or imports and prices are constant, then when investment increases by 50 million and prices are fixed, equilibrium GDP would
a. increase $400 million. b. increase by $50 million. c. increase by $250 million. d. increases by $100 million.
Using the above figure, which of the following is TRUE?
A) Axis 1 is typically called the y-axis. B) Axis 1 is also known as the origin. C) Axis 2 is typically called the x-axis. D) Point b is known as the origin.
Sarah is considering lending an amount of $45,000 to her friend who promises to return $60,000 after the end of ten years
What is the net present value of Sarah's investment? Is it worthwhile to undertake this investment? Assume that the market rate of interest is 6%.
A reduction in the required reserve ratio would cause the interest rates to
A. increase only if the level of investment is low relative to historic levels. B. decrease. C. increase. D. increase only if the level of unemployment is high.