The external marginal cost of producing coal is MCexternal = 8Q while the internal marginal cost is MC internal = 6Q. The inverse demand for coal is given by P = 180 ? 4Q. How much output would a competitive industry produce?
A. 10
B. 20
C. 18
D. 15
Answer: C
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Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. Which of the following gives Kate's best response function?
A. QK = 200 - 0.01QK B. QK = 100 - 0.005QA C. QK = 2,000 - 0.5QK D. QK = 2,000 - 0.5QA
One of the main determinants of real GDP per person is the growth of capital per person. Which of the following variables does NOT determine the growth of capital per person in the long run?
A) average saving rate B) output-to-capital ratio C) marginal tax rate on investment D) depreciation rate
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
Which of the following best explains why the net flow of illegal immigrants to the United States has been close to zero (particularly from 2009-2011)?
A. Increases in Mexican birth rates have made migration more costly. B. Economic growth in Mexico exceeded U.S. growth from 2009-2011. C. Immigration reform has reclassified many illegal immigrants as legal immigrants. D. Dramatic cuts in social services to illegal immigrants has led many to return to their country of origin.