Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is the profit maximizing sales quantity?
A. 20
B. 2,000
C. 8,000
D. 0
B. 2,000
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Explain the difference between a change in quantity supplied and a change in supply
What will be an ideal response?
In the economic way of thinking, the right to coerce adults is
A) immoral. B) a property right. C) the most efficient way for management to control labor. D) necessarily antithetical to a free and open society. E) good because it's rooted in the Old Testament.
Unlike firms in a perfectly competitive industry, monopolists have control over
a. the price they charge for the product b. the quantity of output they produce c. the prices they pay for resources d. the quantities of various resources which are used e. improvements in technology
Since the Red Cross supplies 95 percent of the blood in the United States, it can be considered a monopolist. Assume that it, in fact, operates like a monopolist. The Red Cross currently charges hospitals and other users $21 for a pint of blood. In order to increase the supply of blood, the government offers the Red Cross a $10 million, lump-sum subsidy. How much more blood supply will the subsidy generate?
A. About 500,000 pints B. Somewhere between 100,000 and 500,000, depending on demand elasticity C. Somewhere between 100,000 and 500,000, depending on the elasticity of supply D. Zero