Dan is the owner of a price-taking company that manufactures sporting goods. One particular facility Dan owns produces baseball bats and baseball gloves. His cost function for baseball bats is CB(QB, QG) = 100QB + QB2 + QBQG and the marginal cost is MCB = 100 + 2QB + QG, where QB is the output level for bats and QG is the output level for gloves. Dan's cost function for baseball gloves is CG(QB, QG) = 50QG + QG2 + QGQB, and the marginal cost is MCG = 50 + 2QG + QB. The price of a baseball bat is $240 and the price of a baseball glove is $150. How would the profit-maximizing sales quantities for bats and gloves change if the price of bats was $270?
A. The quantities of bats and gloves will remain unchanged.
B. The quantity of gloves will increase while the quantity of bats will decrease.
C. The quantity of bats will increase while the quantity of gloves will decrease.
D. The quantities of bats and gloves will both increase.
C. The quantity of bats will increase while the quantity of gloves will decrease.
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Jim saw a decrease in the quantity demanded for his firm's product from 800 . to 600 . units a week when he raised the price of the product from $200 to $250 . Based on this information, the demand for Jim's product is
a. Elastic b. Unitary elastic c. Inelastic d. Hard to determine
Susan Greenberg, who works in a typewriter factory, becomes unemployed because people start buying personal computers instead of typewriters. Susan can best be described as:
a. frictionally unemployed. b. structurally unemployed. c. cyclically unemployed. d. not part of the labor force. e. a discouraged worker.
An example of income earned but not received is
A) welfare payments. B) Social Security payments. C) undistributed profits. D) a and b E) a, b, and c
Money demand refers to
a. the total quantity of financial assets that people want to hold. b. how much income people want to earn per year. c. how much wealth people want to hold in liquid form. d. how much currency the Federal Reserve decides to print.