Suppose the daily demand for Coke and Pepsi in a small city are given by QC = 90 - 100PC + 400(PP - PC) and QP = 90 - 100PP + 400(PC - PP), where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can for both Coke and Pepsi. What is Pepsi's inverse demand function?
A. PP = (0.18 + 0.8PC) - 0.002QP
B. QP = (0.18 + 0.8PC) - 0.002PP
C. PP = (90 + 400PC) - 0.002QP
D. QP = (90 + 400PC) - 0.002PP
A. PP = (0.18 + 0.8PC) - 0.002QP
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The marginal revenue product of labor equals
a. MP/wage b. change in total revenue/change in units of labor c. change in total revenue times the change in units of labor d. P/MP e. MP ? wage
Explain the impact of the multiplier effect through the business cycle.
What will be an ideal response?
Jim, who is African American, and Paul, who is Polish American, were roommates in college. When they graduated, they had the same grade point average and excellent recommendations from their professors. Their first jobs were in the same industry at about the same salary. However, 20 years later, Paul is making significantly more money than Jim is. Based on common patterns in the United States, what is a likely reason for the difference?
a. Jim has experienced continuing discrimination over time. b. Paul has experienced reverse discrimination over time. c. Paul has more experience than Jim. d. Jim has fewer qualifications than Paul.
A society can consume a combination of goods outside its production possibilities if there is:
A. Lower unemployment B. International specialization and trade C. A change in consumers' tastes D. A change in prices