A monopoly has two production plants with cost functions C1 = 40 + 0.2Q12 and C2 = 50 + 0.1Q22. The demand it faces is Q = 480 ? 5P. What is the profit-maximizing price?
A. $40 per unit
B. $50 per unit
C. $45 per unit
D. $60 per unit
Answer: D
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Imagine that the economy is at a point on that is below both AA and DD, where both the output and asset markets are out of equilibrium. Which first action is TRUE?
A) The economy will stay at this level in the short run. B) The exchange rate will first rise to a point on the AA schedule. C) The exchange rate will first rise to a point on the DD schedule. D) The AA-DD equilibrium will shift to the position of the economy. E) The output level will first increase to a position on the DD schedule.
The United States economy has achieved the target rate of unemployment, as set by the Full Employment and Balanced Growth Act (1978), for most years over the last few decades
a. True b. False
If a business's total economic cost of producing 1,500 units of a product is $15,000 and this output sold to consumers for $16,500, then the firm would earn an economic profit of:
a. $16,500 b. $1,500 c. $15,000 d. $1,000
Use the figure below to answer the following question.
A movement along the supply schedule from point x to point y depicts
A. a decrease in supply. B. an increase in quantity supplied. C. a decrease in quantity supplied. D. an increase in supply.