You are the manager of a monopoly that faces a demand curve described by P = 63 ? 5Q. Your costs are C = 10 + 3Q. Your firm's maximum profits are:
A. 0.
B. 170.
C. 66.
D. 120.
Answer: B
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Economic profit is always positive when
A. accounting profit is positive. B. accounting profit is zero. C. accounting profit is greater than the firm’s opportunity costs. D. accounting profit is less than the firm’s opportunity costs.
If total cost at Q = 0 is $100 and total cost at Q = 10 is $500, then average variable cost at Q = 10 is
a. $500 b. $400 c. $50 d. $40 e. $10
Government revenue from a tariff is equal to the amount of the tariff times the quantity imported
a. True b. False Indicate whether the statement is true or false
Exhibit 6A-1 Budget line
?
?As shown in Exhibit 6A-1, a leftward shift in the budget line from CD to AB would result from:
A. ?a price reduction in good X. B. ?a price reduction in good Y. C. ?a decrease in consumer income. D. ?an increase in consumer income.