Assume the market price for tangerines is $18.00 per bushel. At the market price, tangerine growers are willing to supply a quantity of 12,000 bushels per week. The quantity supplied drops to zero when the price falls to $5.00 per bushel. Construct a
graph showing this data, calculate the total producer surplus in the market for tangerines, and show the total producer surplus on the graph. Your supply curve should be a straight line.
What will be an ideal response?
The total producer surplus is (1/2 × $13 × 12,000 ) = $78,000.
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Answer the next question based on the following data.OutputTotal Cost0$24133241348454561669The fixed cost of production is
A. $12. B. $9. C. $33. D. $24.
Policymakers focus on marginal tax rate changes when making changes in the tax code because the marginal tax rate
A) determines how tax revenue will change as national income increases. B) determines how much revenue the government will have to spend. C) always equals the average tax rate which is harder to measure. D) affects people's willingness to work, save, and invest.
If a bank receives a $1 million discount loan from the Federal Reserve, then the bank's reserves will
A) not change. B) increase by less than $1 million. C) increase by $1 million. D) increase by more than $1 million.
Assuming that the reserve ratio is 10 percent, what amount of excess reserves are held by with the bank balance sheet listed below? ? Assets ? ? Liabilities & Net Worth ? Reserves $280,000 ? Checking Deposits $2,800,000 Loans Outstanding $2,920,000 ? ? ? Total $3,200,000 ? Net Worth ? ? ? ? Stockholders’ Equity $400,000 ? ? ? Total $3,200,000
A. zero B. $240,000 C. $280,000 D. $320,000