Sweet Treats sells its extra-large cupcakes for $14 each and the firm has a constant marginal cost of $6 per cupcake, which is equal to its (constant) average total cost. If Sweet Treats does not sell a cupcake the day it is produced, it is sold as day-old for $4. Sweet Treats should hold the number of cupcakes in inventory that makes the probability of selling that quantity of cupcakes or more
equal to ________.
A) 0.80 B) 0.20 C) 0.40 D) 0.60
B) 0.20
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The Fed increases the quantity of money to counteract
A) a federal budget surplus. B) an inflationary ga
Refer to Figure 9.1. The firm's profit stays the same whether it produces:
A. 0 or 50 units of output.
B. 50 or 85 units of output.
C. 0 or 85 units of output.
D. 0, 50 or 85 units of output.
Which of the following statements is false?
A) Consumers receive more consumers' surplus when tariffs do not exist. B) Producers receive more producers' surplus when tariffs do exist. C) A tariff results in a net loss to society. D) With a tariff, the gains to the winners are less than the losses to the losers. E) none of the above
The CPI in 1931 equaled 0.15. The CPI in 1932 equaled 0.14. The rate of inflation between 1931 and 1932 was ________ percent.
A. 1.4 B. -7.1 C. -6.7 D. 6.7