Use the following general linear supply function:Qs = 40 + 6P - 8PI + 10F where Qs is the quantity supplied of the good, P is the price of the good, PI is the price of an input, and F is the number of firms producing the good. Now suppose PI = $40 and F = 50, what is the largest amount of the good that firms will supply when the price of the good is $20?
A. 340 units
B. 220 units
C. 80 units
D. 120 units
Answer: A
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A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
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A. Congress passes a law and overrides a veto. B. Congress passes a law that the President signs. C. Congress passes a law that the President signs and overrides a veto. D. Congress passes a law and fails to override the veto.
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A. The price elasticity of demand. B. Profit. C. Variable costs. D. Fixed costs.