Using the figure above, which of the following statements is (are) correct?
i. MR = MC when 3 haircuts are produced.
ii. If the firm charges each customer the same price for a haircut, the price of a haircut is $42.
iii. The firm's MC equals $30.
A) i only
B) ii only
C) i and ii
D) i and iii
E) None of the above is correct.
A
You might also like to view...
In the efficiency wage model, if the real wage is higher than the market-clearing wage so that there is an excess supply of labor
A) firms will hire new workers at lower wages. B) firms will replace high-paid workers with low-paid, formerly unemployed workers. C) employers will not hire workers who are willing to work for a lower wage. D) firms will demand a higher level of effort from existing employees.
Which one of the following was a secondary effect of the stock market crash of 1929?
a. an increase in the money supply in the early 1930s b. a decline in consumption expenditures because of the reduction in the wealth of stockholders c. an increase in the supply of loanable funds as people transferred funds from the stock market into savings accounts d. an increase in tax revenues as the sellers of stocks paid the capital gains tax on stocks that had appreciated during the 1920s
If we let P = the domestic price of a basket of goods and Pf the foreign price of the same basket of goods measured in domestic currency:
A. You cannot determine the relative prices of foreign goods from the equation P/Pf . B. If P/Pf > 1 foreign products will seem inexpensive. C. If P/Pf >1 foreign products will seem expensive. D. If P/Pf = 1 the nominal exchange rate is also = 1.
A tariff is
A) a government-imposed restriction on the quantity of a specific good that can be imported into the country. B) a tax on imported goods. C) a subsidy on domestically produced goods. D) a voluntary agreement to restrict exports.