What is the profit maximizing condition for a vertically integrated firm?
A) Net marginal revenue equals the sum of the marginal costs of the intermediate inputs.
B) Marginal revenue equals the marginal cost of the final output.
C) Net marginal revenue equals the marginal cost of each intermediate good.
D) The sum of net marginal revenues equals the marginal cost of the final output.
C
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If a consumer is initially at an optimum, and then the price of Y falls, then
A. MUx/Px > MUy/Py B. MUx/MUy > Py/Px C. MUx/Px = MUy/Py D. MUx/Px < MUy/Py
The International Monetary Fund was created
A. in the aftermath of World War II to help nations move off of the gold standard. B. to collect money from member countries that were running balance of payments deficits. C. in 1945 by the Bretton Woods Agreement. D. in 1971 when President Richard Nixon signed the Bretton Woods Agreement.
When is the profit a firm earns equal to the producer surplus? Explain
What will be an ideal response?
As the cost of resources goes up, producers ________ production, which drives prices ________
A) increase; up B) increase; down C) decrease; up D) decrease; down