Interlace, Inc produces and a unique soda. The company cannot price discriminate. The figure above shows Interlace's demand curve, marginal revenue curve, and marginal cost curve. Interlace's profit maximizing level of output is
A) 30,000 bottles.
B) 50,000 bottles
C) 100,000 bottles
D) 0; that is, the firm shuts down.
A
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Refer to Monopoly Problem. How much consumer surplus will there be when this monopolist charges its profit maximizing price?
Consider a monopoly with constant marginal costs of $20. Consumers in the market for this monopoly’s product have demand of Q = 100 - 2P. a. $225 b. $450 c. $900 d. $1800
One way fiscal policy affects aggregate demand is:
A. directly through government spending. B. directly through tariffs. C. directly through taxation. D. All of these are true.
The theory of comparative advantage was proposed by
A. Adam Smith. B. David Ricardo. C. Eli Heckscher. D. Karl Marx.
At the ________ level of provision for a ________ good, the government must know everyone's preferences.
A. unregulated; private B. optimal; private C. unregulated; public D. optimal; public