Suppose a monopoly firm has an annual demand function of Qd = 20,000 - 250P, annual variable costs of VC = 16Q + 0.002Q2 and marginal cost of MC = 16 + 0.004Q, where Q is the annual quantity of output. In addition, the firm has an avoidable fixed cost of $25,000 per year. If this firm maximizes its profit, what is the value of aggregate surplus?
A. $247,250
B. $272,250
C. $242,000
D. $217,000
D. $217,000
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Why is the U.S. trade deficit almost always larger than the U.S. current account deficit?
What will be an ideal response?
_____ helps Congress evaluate the president's budget
a. The Treasury Department b. The Office of Management and Budget c. The Congressional Budget Office d. The Joint Economic Committee
Which of the following is an example of price discrimination?
a. Lower admission prices to movies for senior citizens b. Lower prices for DVD players with fewer features than higher-priced players c. Higher prices for houses in California than in Nebraska d. A hair salon charging different prices for haircuts
Suppose that there is an increase in the costs of production that shifts the short-run aggregate supply curve left. If there is no policy response, then eventually
a. because unemployment is low, wages will be bid up and short-run aggregate supply will shift right. b. because unemployment is low, wages will be bid down and short-run aggregate supply will shift right. c. because unemployment is high, wages will be bid up and short-run aggregate supply will shift right. d. because unemployment is high, wages will be bid down and short-run aggregate supply will shift right.