The market demand for MP3 players 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 $400 as the rent,
A) Nick will sell 20 MP3 players.
B) Nick will sell 30 MP3 players.
C) Nick will sell 40 MP3 players.
D) Nick will sell 50 MP3 players.
C
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Which of the following shifts the supply curve of popcorn leftward?
A) a decrease in the price of popcorn B) an increase in the price of popcorn C) a technological development in the production of popcorn D) a decrease in the number of popcorn suppliers E) a decrease in the cost of producing popcorn
Suppose a perfectly competitive firm can produce 20,000 bushels of corn a year at an output at which marginal cost equals marginal revenue. The market price of corn per bushel is $2.00. The firm's total costs per year are $50,000 and fixed costs per year
are $25,000. In the short run, this firm should A) shut down. B) continue producing until the price of corn increases. C) produce 20,000 bushels of corn because, although they are losing money, they are losing less than if they shut down. D) produce 40,000 bushels to try to increase economic profit.
The Federal Reserve influences the level of interest rates in the short run by changing the
A) demand for money through changes in reserve requirements. B) supply of money through open market operations. C) supply of money through changes in stock market operations. D) demand for money through open market operations.
Aggregate demand ________ and shifts the AD curve ________ when ________
A) increases; rightward; government expenditure increases B) increases; leftward; government expenditure increases C) decreases; leftward; foreign income increases D) increases; rightward; future expected profit decreases E) increases; rightward; taxes increase