Refer to the information provided in Table 24.8 below to answer the question(s) that follow.Table 24.8All Figures in Billions of DollarsOutput (Income)Net TaxesConsumption Spending (C = 100 + 0.9Yd)SavingsPlannedInvestment PurchasesGovernment Spending2,6001002,3501501502002,8001002,5301701502003,0001002,7101901502003,2001002,8902101502003,4001003,0702301502003,6001003,2502501502003,8001003,430270150200Refer to Table 24.8. The MPC is
A. 0.9.
B. 0.8.
C. 0.75.
D. 0.5.
Answer: A
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Refer to Figure 15-10. The deadweight loss due to a monopoly is represented by the area
A) GEH. B) FGE. C) FQ1Q2E. D) FHE.
Investors in the London Company (which was later re-formed as the Virginia Company)
a. earned substantial profits on their investment. b. earned modest profits on their investments. c. broke even, with revenues just covering the principal. d. earned substantial losses on their investment.
The number of firms in a perfectly competitive market:
A. varies in the short run. B. is the same at all possible long-run equilibria. C. is fixed in the long run. D. is fixed in the short run.
You own your business, and your research indicates that the price elasticity of demand for your product is 3.5. What pricing strategies should you follow, and why?
What will be an ideal response?