Use the above figure. The profit-maximizing or loss minimizing output and price will be
A) Q1 and P2.
B) Q2 and P3.
C) Q3 and P3.
D) Q4 and P1.
B
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Changes in the real interest rate affect all of the following components of aggregate expenditure except
A) consumption. B) investment. C) government purchases. D) net exports.
A particular music store, Discs-R-Us, sells over 3,000 different compact disks. Pat's opportunity cost of choosing to purchase a compact disk by Pearl Jam
a. is zero if he does not like any other compact disk b. is how much he would have enjoyed his second-favorite compact disk c. depends on the compact disks not sold by the store d. is negative e. is how much he would have enjoyed a compact disk by Vanilla Ice
If the marginal propensity to consume for a nation is 0.8, it means:
a. consumers save 80% of their incomes. b. consumers spend 80% of their incomes. c. consumers pay 20% tax on their earnings. d. consumers decrease their spending by $0.80 for each $1 of a decrease in their income.
The figure below presents information for a one-shot game.Firm AFirm B??Low PriceHigh Price?Low Price(2,2)(10,-8)?High Price(-8,10)(6,6)If this one-shot game is repeated 100 times, the Nash equilibrium payoffs of the players will be ________ each period.
A. (6, 6) B. (2, 2) C. (?8, 10) D. (10, ?8)