Suppose Debbie is willing to pay $50 for a pair of shoes but has to pay $20 because the shoes are on sale. Her consumer surplus is:
a. ?$20.
b. ?$50.
c. ?$70.
d. ?$30.
e. ?$25.
Ans: d. ?$30.
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If the price elasticity of demand is greater than 1, a monopoly's
A) total revenue increases when the firm lowers its price. B) total revenue decreases when the firm lowers its price. C) marginal revenue is negative. D) marginal revenue is zero.
The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The total fixed cost of producing 10 baseball hats per hour is
A) $400 B) $200 C) $22 D) More information is needed to answer the question.
A sudden expectation of future depreciation of the dollar causes funds to flow __________ the United States and the dollar to actually __________
A) out of; depreciate B) out of; appreciate C) into; depreciate D) into; appreciate
A monopolist is able to maximize its profits by: a. setting the price at the level that maximizes its per-unit profit
b. producing output where marginal revenue equals marginal cost and charging a price along the demand curve. c. producing output where marginal revenue equals marginal cost and setting price at the demand curve's highest point. d. producing output where price is equal to its marginal cost.