Goodspeed Automobiles manufactures 100 disc brake cylinders. At this output level, its marginal revenue is equal to its marginal cost. If the revenue per unit of output is $500 and the per unit cost is $350, its profit is:
a. $20,000.
b. $15,000.
c. $45,000.
d. $25,000.
e. $10,000.
b
You might also like to view...
Everything else equal, if the dollar depreciates against the Chinese yuan:
A) China will stop trading with the U.S. B) China will import more from the U.S. and will export less to the U.S. C) China will export more to the U.S. and will import less from the U.S. D) the Chinese government will buy yuan from the foreign exchange market.
The set of all possible bundles of goods and services that can be purchased with a consumer's income is referred to as the:
A) demand set. B) supply set. C) budget set. D) universal set.
Which of the following is an example of the snob effect?
A) The fewer consumers that buy the operating system, the fewer the applications that will be available. B) The more people that buy a luxury watch, the less value consumers put on the watch. C) The fewer ATMs available in the city, the fewer consumers want to join the network. D) None of the above.
You are ill on the day of the concert for which you had bought tickets almost a month ago. Since you paid almost $40 for the tickets, you are considering whether to go to the concert anyway. Rational choice theory says that you should go to the concert only if:
A. the benefits of going outweigh the $40 dollars plus any additional pains associated with getting out of bed while being sick. B. the benefits of going outweigh the $40 dollars you spent on the tickets. C. the benefits of going outweigh any pains associated with getting out of bed while being sick. D. you feel better.