Roaring Lion Studios can produce DVDs at a constant marginal cost of $5 per disk, and the studio has just releasing the DVD for its latest hit film, Ernest Goes to the Hamptons
The retail price of the DVD is $25, and the elasticity of demand for this film is -2. Has the studio selected the profit-maximizing retail price for this DVD? A) Yes
B) No, the retail price is too low
C) No, the retail price is too high
D) We do not have enough information to answer this question.
C
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A justification for general grants is _____
a. the equalization of revenues between government units with different income levels b. higher level governments might have a greater ability to raise revenue c. progressive taxation cannot be done on the local level d. a and b
In the short run, if a firm's total variable cost curve lies above its total revenue curve at all possible output levels, the firm's minimum short-run loss
a. equals its total fixed cost b. equals zero c. occurs at the maximum point of the total revenue curve d. occurs at the maximum point of its marginal revenue curve e. occurs at the minimum point of its marginal cost curve
If people decide that some country is now a more risky place to keep their saving, then at the original interest rate in that country there is a
a. surplus of loanable funds, so the interest rate increases. b. surplus of loanable funds, so the interest rate decreases. c. shortage of loanable funds, so the interest rate increases. d. shortage of loanable funds, so the interest rate decreases.
ABC Co. produces only gadgets, and XYZ Co. produces both gadgets and widgets. If ABC Co. produces gadgets at the same average total cost as XYZ Co., economies of:
A. scope are not present in XYZ. B. scope are present in ABC. C. scale are not present in XYZ. D. scale are present in ABC.