Calculate the firm's total profit.
Total profit = (price - ATC) × output
= ($130 - $92.80) × 600
= $37.20 × 600
= $22,320
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In the traditional Keynesian model, an income tax cut raises real GDP because
A) consumption spending depends positively on after-tax income. B) of the crowding-out effects of taxes. C) consumption spending depends negatively on after-tax income. D) consumption spending is not related to after-tax income.
In an auction, ________
A) buyers set the price of a good B) the seller sets the price of a good C) the government sets the price of a good below its market price D) the government sets the price of a good above its market price
What are the effects of an expansionary monetary policy on interest rates and output in an open economy with fixed exchange rates?
What will be an ideal response?
When interpreting the meaning of an exchange rate, the first step is to always:
a. know exactly what the exchange rate signifies in terms of which currency is the denominator. b. watch for ways the currency might lose value. c. learn about recent behavior of the exchange rate. d. know exactly what the rate is at any moment in time.