A firm produces 10 widgets that they sell for $15 each. The average variable cost for the production of 10 widgets is $13/unit. The fixed cost for this firm equals $20. What is the value of this firm's profits?
A. -$20
B. 0
C. $20
D. -$2
Answer: B
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When the price of a burrito increases from $2 to $4, the quantity demanded decreases from 50 to 40. Using the midpoint method, the price elasticity of demand equals
A) 1/3. B) 3. C) 2. D) 1. E) 1/2.
In the game in Scenario 13.17, Incumbent Monopoly has
A) an incentive to threaten accommodation, which would be credible. B) an incentive to threaten war, which would be credible. C) an incentive to threaten accommodation, which wouldn't be credible. D) an incentive to threaten war, which wouldn't be credible. E) no incentive to make a threat.
Other things the same, if the U.S. price level rises, then
a. the supply of dollars in the market for foreign-currency exchange increases, and net exports fall. b. the supply of dollars in the market for foreign-currency exchange increases, and net exports rise. c. the supply of dollars in the market for foreign-currency exchange decreases, and net exports fall. d. the supply of dollars in the market for foreign-currency exchange decreases, and net exports rise.
Why is it technically incorrect to say that the board of directors of the regional Fed banks set the discount rate that each bank charges?
What will be an ideal response?