Suppose the market demand for milk is Qd = 150 - 5P. Additionally, suppose that a dairy's variable costs are VC = 2Q2 (where Q is the number of gallons of milk produced each day), its marginal cost is MC = 4Q and there is an avoidable fixed cost of $50 per day. In the long run there is free entry into the market. Suppose the demand for milk doubles. How many new firms enter the market in the long run due to the increased demand?
A. 10
B. 20
C. 100
D. 2
A. 10
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Suppose managers of an art auction house are going to auction a painting that is believed to be painted by a famous artist. If the managers of the auction are able to provide evidence that the painting was created by the famous artist, the participants in the auction will have ________ confidence in their own valuation of the painting and will submit ________ bids.
A) less; lower B) less; more C) more; lower D) more; higher
Which of the follow is not a property of the aggregate demand curve?
A. It shows the relationship between the overall price level and the level of total demand. B. It shows the price level on the vertical axis and output on the horizontal axis. C. The aggregate demand curve slopes downward. D. It shows the relationship between the overall price level and level consumption.
Monetarists argue that the long-run Phillips curve is negatively sloped
a. True b. False Indicate whether the statement is true or false
Generally speaking, a country whose currency appreciates will experience, as a result,
A. Reduced aggregate demand as a result of a decrease in exports. B. Increased exports. C. Inflationary pressure from higher import prices. D. Increasing interest rates from capital inflow.