An apple farmer must decide how many apples to harvest for the world apple market. He knows that there is a one-third probability that the world price will be $1, a one-third probability that it will be $1.50, and a one-third probability that it will be $2. His cost function is C(Q) = 0.01Q2. The expected profit-maximizing quantity is:
A. 150.
B. 0.
C. 90.
D. 75.
Answer: D
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In Pioneer Ville, the price elasticity of demand for bus rides is 0.5 . When the price of a bus ticket rises by 5 percent, _______
A. the demand for bus rides increases by 10 percent B. the quantity of bus rides demanded increases by 2.5 percent C. the demand for bus rides decreases by 2.5 percent D. the quantity of bus rides demanded decreases by 2.5 percent
Rapid economic growth tends to increase the degree of income mobility
Indicate whether the statement is true or false
Which of the following is an example of a barrier to entry? (i) A key resource is owned by a single firm. (ii) The costs of production make a single producer more efficient than a large number of producers. (iii) The government has given the existing monopolist the exclusive right to produce the good
a. (i) and (ii) only b. (ii) and (iii) only c. (i) only d. (i), (ii), and (iii)
In an imperfectly competitive output market, the firm is faced with a(n) ________ MPP curve and a(n) ________ MR curve.
A. upward sloping; downward sloping B. downward sloping; horizontal C. downward sloping; downward sloping D. downward sloping; upward sloping