A manager of a firm with market power faces the marginal revenue product and average revenue product curves shown below. The firm incurs weekly fixed costs of $1,800. The firm employs a single variable input, labor, which costs $600 per worker each week.
Given the above, the maximum profit the firm can earn is ________.
A. $3,000 per week.
B. -$1,800 per week.
C. $4,800 per week.
D. $1,800 per week.
E. $2,400 per week.
Answer: A
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Income taxes were made constitutional in the United States by the ________
A) Recovery Act of 2009 B) 16th Amendment to the U.S. Constitution C) Sherman Anti-Trust Act of 1890 D) Gramm-Leach-Bliley Act of 1999
If the cross price elasticity of demand between two commodities is positive, then these commodities are
A) are superior. B) are complements. C) are substitutes. D) are inferior.
In general, the more elastic a demand curve is the:
A. flatter it will be. B. steeper it will be. C. more bowed-in it will be. D. faster it will shift when price changes.
In the area of taxation, the trade-off between equity and efficiency
a. never occurs since efficient taxes are often the most progressive. b. is relevant as efficient taxes are often regressive. c. is irrelevant. d. is relevant because efficient taxes are often progressive.