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. What is the market equilibrium quantity?
A. 5 gallons per day
B. 35 gallons per day
C. 50 gallons per day
D. 100 gallons per day
C. 50 gallons per day
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What effect does an increase in the price of the firm's output have on its demand curve for labor? Why?
What will be an ideal response?
According to James Duesenberry
a. relative income is unimportant b. the MPC decreases as national income increases c. Keynes's absolute income hypothesis is correct but his investment hypothesis is not confirmed by the data d. the consumption function slopes downward e. consumption spending is rooted in status
That some firms are engaged in more than one type of business is explained, in some cases, by
a. moral injunctions such as the Golden Rule. b. the existence of charitable organizations. c. government regulations that discourage the internalization of externalities. d. the fact that the internalization of externalities sometimes coincides with the self-interest of the relevant parties.
A discount loan is a loan the Federal Reserve makes to a commercial bank
Indicate whether the statement is true or false