Joan loves to eat sushi. Her first piece of sushi normally yields a marginal benefit of $5. Each additional piece creates a declining marginal benefit by $0.25 per piece. If her favorite sushi bar charges $2.75 per piece of sushi, how many pieces should she eat?
a. 8
b. 10
c. 5
d. 11
b. 10
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Supply-side economists argue that less government spending:
A. would make more investment capital available at lower rates of interest to the private sector. B. will result in more crowding out. C. causes higher rates of unemployment and inflation. D. would cause interest rates to increase dramatically.
The fact that some resource prices are fixed by contracts help explain why firms:
What will be an ideal response?
A perfectly competitive firm's economic profit is maximized by producing the amount of output such that
A) total revenue equals total variable cost. B) marginal revenue equals marginal cost. C) total revenue equals total cost. D) marginal revenue is equal to total revenue.
Assuming the United States is the "domestic" country, if the real exchange rate between the United States and France increases from 1.5 to 1.8,
A) the prices of U.S. goods and services have increased by 53% relative to France. B) the prices of U.S. goods and services have decreased by 16% relative to France. C) the prices of U.S. goods and services have increased by 20% relative to France. D) the prices of U.S. goods and services have increased by 3% relative to France.