A black market
A. was created when after hours trading was permitted on some stock exchanges.
B. is a market where products with outdated expiration dates are sold.
C. can arise when government imposes a price floor below the market clearing price.
D. can arise when government imposes a price ceiling below the market clearing price.
Answer: D
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Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is the profit maximizing sales price?
A. $47.70 B. $30.00 C. $45.00 D. $50.00
A source of business risk is a change in
A) technology. B) consumer preferences. C) input prices. D) All of the above
Economists and accountants both think of profits as total revenue minus total cost, but what they include in costs may differ
a. True b. False Indicate whether the statement is true or false
When the demand and supply of grapes both decrease at the same time, we can safely predict that the: a. price of grapes will fall
b. price of grapes will rise. c. quantity of grapes exchanged will fall. d. quantity of grapes exchanged will rise.