Using time-series data, the demand function for a profit-maximizing monopolist has been estimated asQd = 142,000 - 500P + 6M - 400PRwhere Qd is the amount sold, P is price, M is income, and PR is the price of a related good. The estimated values for M and PR in 2014 are $25,000 and $200, respectively. The short-run marginal cost curve for this firm has been estimated as:MC = 200 - 0.024Q + 0.000006Q2Total fixed cost is forecast to be $500,000 in 2016. What is the value of average variable cost at the optimal level of output?
A. $196
B. $112
C. $96
D. $232
E. $76
Answer: D
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A) only the buyers. B) only the sellers. C) both the buyers and sellers. D) None of the above answers is correct.
Foreign factories produce ________ of the shoes New Balance sells in the United States
A) none B) less than 15 percent C) roughly half D) about 75 percent
_____ is a resource whose quality is most often enhanced by technological change
a. Capital b. Land c. Labor d. Entrepreneurship e. Credit
Which statement is true?
A. If you know a person's demand schedule, you can find his total utility, but not his marginal utility. B. If a good is free, you will consume more and more of it until your marginal utility is zero. C. If a good is free, you will consume more and more of it until your total utility is zero. D. If you know a person's demand schedule you can find her marginal utility, but not her total utility.