Refer to the graph shown. If market price is currently $3.00 per unit, this perfectly competitive firm will maximize profit by producing:
A. 850 units of output.
B. 650 units of output.
C. between 550 and 650 units of output.
D. 450 units of output.
Answer: D
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If the U.S. dollar depreciates against the euro, what can the Fed do to keep the dollar's exchange rate stable?
A) decrease U.S. imports by increasing tariffs B) nothing C) buy dollars in the foreign exchange market D) sell dollars in the foreign exchange market E) buy euros in the foreign exchange market
A factory urgently needs to hire some workers. The factory owner is willing to pay a wage of $15 per hour to responsible workers and is unwilling to hire workers who require constant monitoring
On average, he expects 5 out of 10 workers who have come for an interview to be sincere. How much should he offer to pay the workers he hires? A) $15 per hour B) $7.50 per hour C) $10 per hour D) $8 per hour
Which of the following can eliminate the inefficiency inherent in monopoly pricing?
a. arbitrage b. cost-plus pricing c. price discrimination d. regulations that force monopolies to reduce their levels of output
The firm's supply curve is made up of the
A. points where MC=MR. B. points where MC=MR, and they make a profit. C. points where MC=MR above the minimum of AVC. D. points where MC=MR, and they make at least breakeven.