Jessica owns a company that makes pre-packaged sandwiches for convenience stores. The market price for a sandwich is $5 and Jessica is a price-taker. Her daily cost for making sandwiches is C(Q) = 2.5Q + (Q2/40) and her marginal cost is MC = 2.5 + (Q/20). How many sandwiches should Jessica produce each day?
A. 20
B. 40
C. 45
D. 50
D. 50
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Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The amount of the tax revenue paid by the buyer is
A. $300. B. $600. C. $2100. D. $900.
During the Great Depression, cyclical unemployment increased as the recession continued. This increase in cyclical unemployment
A) could have increased or decreased the natural rate of unemployment. B) decreased the natural rate of unemployment. C) increased the natural rate of unemployment. D) had no effect on the natural rate of unemployment.
Briefly explain the process of multiple deposit creation
What will be an ideal response?
Summing the value added of all firms yields the value of final goods and services produced because both measures:
A. exclude the value of intermediate goods and services. B. use constant prices. C. exclude the value of capital goods. D. are adjusted for population growth.