The market demand for a monopoly firm is estimated to be:Qd = 100,000 - 500P + 2M + 500PRwhere Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2016. The average variable cost function is estimated to beAVC = 520 - 0.03Q + 0.000001Q2Total fixed cost in 2016 is expected to be $4 million. The estimated marginal cost function is
A. SMC = 260 - 0.03Q + 0.000015Q2.
B. SMC = 260 - 0.015Q + 0.000005Q2.
C. SMC = 520 - 0.06Q + 0.000003Q2.
D. SMC = 520 - 0.03Q + 0.000002Q2.
E. none of the above
Answer: C
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In an attempt to boost enrollment, in January, 1996, a private college in Iowa offered free tuition for graduating high school seniors from the county where it is located. For students who accepted the offer, how did this offer affect the opportunity cost of attending college?
a. The opportunity cost did not change, since lost earnings were still a factor. b. The opportunity cost became zero for the typical student. c. The opportunity cost was very low, because the only cost was for books and supplies. d. The opportunity cost did not change, since tuition was not a factor in computing opportunity cost. e. The opportunity cost was lower than if tuition was charged, but there was still a cost.
Which one of the following would supply dollars to the foreign exchange market?
a. the sale of U.S. automobiles to a Mexican consumer b. the spending of British tourists in the United States c. the purchase of Canadian oil by a U.S. consumer d. the sale of a U.S. corporation to a Saudi Arabian investor
The burden of the internal portion of the debt is incurred
A. Solely by the U.S. government. B. When the debt comes due. C. When the debt-financed activity takes place. D. None of the choices are correct.
Refer to the information provided in Figure 8.4 below to answer the question(s) that follow. 
Figure 8.4 Refer to Figure 8.4. If two microwave ovens are produced, Micro Oven's total variable costs are
A. $150. B. $300. C. $450. D. indeterminate from this information.