The above table depicts prices, quantities, and marginal costs faced by the campus bookstore. Based on marginal analysis, what is the profit-maximizing level of output for the bookstore?
A) 1 book
B) 2 books
C) 3 books
D) 4 books
C
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Since Ditto can always be expected to choose the same activity as Dot in the copycat game
a. any move by Dot to escape from Ditto would not be a Pareto improvement. b. any move by Dot to escape from Ditto would be a Pareto improvement. c. Ditto's choice to follow Dot is a Pareto improvement over going by himself. d. Ditto's choice to follow Dot would be a Pareto improvement over playing by himself so long as Dot does not move.
If the MPS is one-third, a $100 increase in net exports will
A) reduce real Gross Domestic Product (GDP) by $300. B) reduce real Gross Domestic Product (GDP) by $100. C) increase real Gross Domestic Product (GDP) by $300. D) increase real Gross Domestic Product (GDP) by $33.
If a non-binding price floor were to be set in the market in the graph shown, it could be set at:
A. $30.
B. $23.
C. $16.
D. All of these would be binding price floors for this market.
The two words economists use most often are
a. inflation and trade. b. supply and demand. c. competition and prices. d. markets and equilibrium.