The market demand for MP3 player is p = 50 - 0.5Q, and the marginal cost for Nick to obtain and sell a MP3 player is $10. If he signed a fixed-fee rental contract with the store owner and pays $1000 as the rent,
A) Nick will sell 20 MP3 players.
B) Nick will sell 40 MP3 players.
C) Nick will sell 50 MP3 players.
D) Nick will not sign the contract.
D
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Which of the following attributes of trade explain why it is important for economic prosperity?
a. Trade moves goods from people who value them less to people who value them more. b. Trade makes it possible to produce a larger output as a result of lower per unit costs that often accompany large-scale production. c. Trade makes it possible to produce a larger output as a result of gains from division of labor and specialization. d. All of the above.
Braun and Evans found that
A. professional forecasters have rational expectations of inflation. B. electricity use by producers rises sharply in economic upturns. C. shocks to fiscal policy are the main source of business cycle fluctuations. D. the measured Solow residual varied sharply over the seasons.
Which of these statements is generally accepted by economists? Perfect competition
A) provides both equity and efficiency. B) provides equity but not necessarily efficiency. C) provides efficiency but not necessarily equity. D) generally satisfies neither efficiency nor equity.
Suppose the required reserve ratio is 20%. What is the maximum amount of total money supply that can be created from an initial deposit of $200? In general, why might the actual amount of total money creation be less than the maximum?