Suppose a perfectly competitive ukulele factory can produce 35 ukuleles at an output at which marginal cost equals marginal revenue. The price per ukulele is $1300 and the average total cost is $1500. What is the profit or loss that this furniture factory is earning?
A. $700.00
B. -$450.00
C. -$7,000.00
D. -$1,050.00
Answer: C
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A financial crisis is
A) not possible in the modern financial environment. B) a major disruption in the financial markets. C) a feature of developing economies only. D) typically followed by an economic boom.
If goods X and Y are complements, the
a. quantities demanded of X and Y tend to move in opposite directions. b. quantities demanded of X and Y tend to move in the same direction. c. prices of X and Y tend to move in the same direction. d. supply curves for X and Y tend to move in the same direction.
If the government attempts to break up a natural monopoly to enforce competition in an industry
A. the average cost of producing the good will increase. B. the smallest firm will have a significant cost advantage over the larger, less efficient firms. C. the average cost of producing the good will decrease. D. the price paid by consumers will be expected to remain the same.
In the recession of 2008-2009, the unemployment rate rose to over 10 percent.
Answer the following statement true (T) or false (F)