Refer to above figure. While selling exports it would also maximize its domestic sales by equating its marginal (opportunity) cost to its marginal revenue of $5. How much steel would the firm sell domestically, and at what price?
What will be an ideal response?
4 million tons at $10/ton.
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The marginal cost of an activity is the:
A. the total cost of the activity divided by the change in the level of the activity. B. change in the level of the activity divided by the change in the cost of the activity. C. the total cost of the activity divided by the level of the activity. D. change in the total cost of the activity that results from carrying out an additional unit of the activity.
Refer to the scenario above. The opportunity cost of producing one pound of oranges in Zeta is:
A) 1 pound of apples. B) 0.33 pounds of apples. C) 0.5 pounds of apples. D) 2 pounds of apples.
The trade-off between unemployment rates and inflation originates in the
A. Upward-sloping AD curve. B. Upward-sloping AS curve. C. Downward-sloping AS curve. D. Vertical AS curve.
Which of the following is true of a perfectly contestable market?
A. P > MC and P < ATC B. P < ATC C. P = MC D. P > MC