With respect to real output, in the long run, money is:
What will be an ideal response?
neutral
You might also like to view...
Diana is a personal trainer whose client Charles pays $80 per hour-long session. Charles values this service at $100 per hour, while the opportunity cost of Diana's time is $75 per hour. The government places a tax of $10 per hour on personal trainers. Before the tax, what is the total surplus?
a. $25 b. $20 c. $5 d. $0
Suppose the equilibrium price in the market is $200 and the marginal revenue associated with the linear (inverse) demand function is ?$200. Then we know that the own price elasticity of demand is:
A. ?1. B. ?0.5. C. 2. D. It cannot be determined from the information contained in the question.
If a nation's Lorenz curve lies on the 45 degree line of income equality, then
A) more of the nation's income is received by the lowest 25 percent of families than by the highest 25 percent. B) every household's income level is different. C) more of the nation's income is received by the highest 25 percent of families than by the lowest percent. D) the income received by each 25 percent of families is 25 percent of the total income.
A monopolist faces a demand curve Q = 120 - 2p and has costs given by C(Q) = 20Q + 100
a. Write the monopolist's profits in terms of the price it charges. b. Use the derivative (w.r.t. price) to determine the monopolist's profit-maximizing price. c. Now, derive the monopolist's inverse demand based on the demand equation above. Write out the monopolist's profits in terms of quantity. d. Use the derivative w.r.t. Q to determine the monopolist's optimal quantity. What price does the monopoly charge?