A firm is producing a joint product, Product A and Product B, with variable proportions. At its current production levels, the marginal benefit of producing Product A is $8 and the marginal cost is $12 and the marginal benefit of producing Product B is $8 and the marginal cost is $2. To maximize profits, the managers of the firm should produce ________ of Product A and ________ of Product B.
A) more; less
B) more; more
C) less; less
D) less; more
D) less; more
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A consumer values a car at $525,00 . and a producer values the same car at $485,000 . If sales tax is 8% and is levied on the seller, then the sellers bottom line price is
a. $527,000 b. $523,800 c. $525,000 d. $500,000
Nick has a certain amount of money that he wants to invest in a completely risk-free manner. He would most likely: a. deposit it in a bank or credit union
b. invest in a mutual fund. c. purchase shares on the stock market. d. hide the money somewhere in his or her home.
When market price is below equilibrium price
A. a shortage is generated. B. market price will rise. C. quantity demanded is greater than quantity supplied. D. All of the choices are correct.
Refer to the figure above. The economy is at equilibrium at point B. What would expansionary fiscal policy do?
Move the economy from point B upward along AD2 Move the economy from point B towards point C Move the economy from point B downward along AD2 Move the economy from point B towards point A