In a successive monopoly structure, if distributor has a constant marginal cost of $5 and is paying the producer $12 per unit, which is the profit-maximizing wholesale price, what is the distributor's marginal revenue at this output level?
A) $7
B) $17
C) $12
D) $5
B) $17
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When the Fed acts as a "lender of last resort," like it did in the financial crisis of 2007-2008, it is performing its role of
A. providing for check clearing and collection. B. being the bankers' bank. C. controlling the money supply. D. setting the reserve requirements.
A decrease in government expenditure on goods and services
A) increases aggregate demand. B) increases the aggregate quantity demanded. C) decreases the aggregate quantity demanded. D) decreases aggregate demand.
Stocks and bonds issued in banking-oriented systems are rather __________ because they are traded __________
A) liquid; frequently B) liquid; infrequently if at all C) illiquid; frequently D) illiquid; infrequently if at all
Suppose the market for potatoes can be expressed as follows:
Supply: QS = -20 + 10p Demand: QD = 400 - 20p If the government sets a maximum price of $10 per unit, what will be the quantity demanded and quantity supplied?