The market demand for MP3 players is p = 50 - 0.5Q, and the marginal cost for an MP3 player is $10. If Nick receives 60% of the total profit, then
A) Nick will produce 50 MP3 players.
B) Nick receives $500 as profit.
C) total profit is $800.
D) the efficiency in production is not achieved.
C
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When studying individuals' economic behavior, economists assume that
A) individuals understand the rationale for all their actions. B) individuals act as if they were rational. C) only educated people act as if they were rational. D) self-interest is of limited relevance in predicting an individual's actions.
Which of the following goods is least likely to be in a market basket?
A. A missile B. A gallon of milk C. A pair of khaki pants D. A tank of heating oil
A duopoly is a market structure with: a. one buyer and one seller
b. two firms providing all the output. c. only two differentiated products. d. only a few dominant sellers and a limited number of buyers.
When government imposes price controls in a market,
a. non-price factors become more important in the rationing of the good. b. efficiency in the market is enhanced. c. shortages and surpluses are eliminated. d. buyers and sellers both become better off.