If a firm requires a standardized raw material to produce its output, ________ is often the least expensive option to purchase the raw materials.
A) backward integration
B) forward integration
C) divestiture
D) the spot market
D) the spot market
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A movie monopolist sells to students and adults. The demand function for students is QdS = 600 - 100P and the demand function for adults is QdA = 1,200 - 100P. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from students?
A. $400 B. $2400 C. $2500 D. $0
If marginal revenue exceeds marginal cost, profit maximizers should
a. reduce output until they are equal b. increase output until they are equal c. increase output until profits are zero d. decrease output unless profits are zero e. maintain current output
____ is an object in use as a medium of exchange, but which also has a substantial value in alternative uses
a. IOU b. A commodity money c. Fiat money d. Deposit certificate
An increase in the price of off-road vehicles will result in
A) a smaller quantity of off-road vehicles supplied. B) a larger quantity of off-road vehicles supplied. C) an increase in the demand for off-road vehicles. D) a decrease in the supply of off-road vehicles.