Suppose a monopolist has TC = 40 + 10Q + Q2, and the demand curve it faces is p = 130 - 2Q. What is the maximum profit achieved by this monopoly?
A) Profit = 1160
B) Profit = 1240
C) Profit = 1450
D) Profit = 1800
A
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Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2. The price that sellers receive is
A. P0. B. P2. C. P5. D. P8.
If the quantity of money demanded exceeds the quantity of money supplied, then the
A) equilibrium interest rate will decrease. B) equilibrium interest rate will increase. C) equilibrium interest rate stays the same. D) effect on the equilibrium interest rate is indeterminate.
One of the two criteria for a resource to be considered capital is that it must:
A) occur naturally. B) be part of a factory or building. C) be a skill or talent possessed by a person. D) be possible to use it to produce other goods and services.
A budget surplus is defined as the amount that the
A. government owes to lenders at any moment in time. B. government spends in any time period. C. government’s expenditures exceed receipts in any time period. D. government’s receipts exceed expenditures in any time period.