In Figure 2.1, a "P" for price would go in
A. Box 2.
B. Box 4.
C. Box 6.
D. Box 1.
Answer: D
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A firm sells 30 units of its product at a price of $5 per unit. It incurs a fixed cost of $100 and a variable cost of $20. The firm's profit is:
A) $30. B) $50. C) $100. D) $150.
Assume an indifference curve yields a consumer 1,000 utils of total utility. If the consumer's budget increases by 50 percent, then the indifference curve:
a. shifts rightward. b. shifts leftward. c. becomes more linear. d. is unchanged.
When a firm is operating in a price-taker market, marginal revenue will always equal
a. average total cost. b. one minus the elasticity of the market demand curve. c. total revenue. d. price.
Historically, velocity has been:
A. relatively stable, though the Great Depression of the 1930s caused some significant fluctuations. B. in sync with the business cycle, increasing during times of decline and increasing with recovery. C. relatively stable, though the recent crisis has temporarily caused some significant changes. D. in sync with the business cycle, slowing during times of decline and increasing with recovery.