Dan is the owner of a price-taking company that manufactures sporting goods. One particular facility Dan owns produces baseball bats and baseball gloves. His cost function for baseball bats is CB(QB, QG) = 100QB + QB2 + QBQG and the marginal cost is MCB = 100 + 2QB + QG, where QB is the output level for bats and QG is the output level for gloves. Dan's cost function for baseball gloves is CG(QB, QG) = 50QG + QG2 + QGQB, and the marginal cost is MCG = 50 + 2QG + QB. The price of a baseball bat is $240 and the price of a baseball glove is $150. What is the profit-maximizing sales quantity for baseball bats?
A. 10
B. 20
C. 30
D. 60
D. 60
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The increase in spending that occurs because the real value of money increases when the price level falls is known as the
A) price effect. B) wealth effect. C) interest rate effect. D) international trade effect.
After Bretton Woods period, countries chose to control
A) fixed exchange rate only. B) monetary policy oriented toward domestic goals only. C) freedom of international capital movements only. D) fixed exchange rate and freedom of international capital movements. E) fixed exchange rate and monetary policy oriented toward domestic goals.
A monopoly can be formed by a bandwagon effect. Which of the following products would most closely match the bandwagon effect?
A) The Atlanta Braves baseball club B) The Dell Computer C) The Apple Watch D) The Chevrolet Corvette
Which of the following best satisfies the five prerequisites of money?
a. river-rounded stones b. bananas c. hardwood trees d. bricks e. silver