In the above figure, the profit-maximizing monopolistically competitive firm will
A. incur a loss of $20,000.
B. make a profit of $30,000.
C. make a profit of $24,000.
D. make a profit of $0.
Answer: B
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At the break-even point for the consumption function
A) saving is positive. B) saving is zero. C) saving is negative. D) the marginal propensity to consume equals l.
If two firms playing Cournot are identical with decreasing average costs, how should the firms divide production to maximize joint profits?
What will be an ideal response?
Social capital is
a. the shared values and trust that promote cooperation in the economy b. the buildings and equipment used to produce goods and services c. a government regulation aimed at improving health and safety d. the accumulated knowledge, skill, and experience of the labor force e. the owner's own or borrowed money invested in a business
If the government reduces transfer payments, what happens to the budget deficit? What curve does this change in the market for loanable funds, which direction does it shift, and what happens to the equilibrium interest rate?