A price searcher faces the following demand function: At $7, 6, 5, 4, and $3, the quantity demanded is 300, 400, 500, 600, and 700 units respectively. If the firm's marginal cost is $100 at any level of output, it would maximize net revenues by
A) producing 400 units and charging $6.
B) producing 500 units and charging $5.
C) producing 600 units and charging $4.
D) producing 700 units and charging $3.
B
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If there are external benefits for good X then which of the following would be true?
a. The socially efficient amount of good X can be achieved if society subsidizes consumers of good X. b. The socially efficient amount of good X does not exist. c. The socially efficient amount of good X can be achieved if society taxes consumers of good X. d. The socially efficient amount of good X will be equivalent to the free market equilibrium quantity.
If Congress decreases the amount of government insurance on bank deposits, then this action would:
A. Create a moral hazard problem B. Reduce a moral hazard problem C. Create an adverse selection problem D. Reduce an adverse selection problem
Why shouldn’t Japan make its main production sector agriculture?
What will be an ideal response?
A university education costs more per student than a high school education because
A. college professors earn more than high school teachers. B. college professors teach less than high school teachers. C. colleges are typically in a monopoly position. D. A) and B).