Carolina Baby Inc produces and sells dresses for kids in a perfectly competitive market. Which of the following will be the firm's profit-maximizing outcome?
a. The firm earns a marginal revenue of $20 if it produces 600 dresses at a marginal cost of $15.
b. The firm earns a marginal revenue of $20 if it produces 700 dresses at a marginal cost of $20.
c. The firm earns a marginal revenue of $20 if it produces 800 dresses at a marginal cost of $24.
d. The firm earns a marginal revenue of $20 if it produces 900 dresses at a marginal cost of $27.
b
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The term demand refers to
a. a collection of numbers, listing the quantities demanded at a variety of hypothetical prices. b. the information on tastes, incomes, and prices needed to determine people's desired purchases of a commodity. c. the amount of a commodity that is being purchased under current market conditions. d. the quantity purchased at each and every possible level of income.
Since most colleges and universities charge the same tuition to every student regardless of what time students choose to take their classes,
A) the schools must develop some type of non-price rationing device. B) it follows that all classes will have a shortage of seats. C) it follows that all classes will have a surplus of seats. D) it follows that some classes will likely have a shortage of seats while other classes may have a surplus of seats. E) a and d
Short-run supply determinants include
A. Number of buyers. B. Consumer preferences. C. Technology. D. Income.
The GDP deflator in year 2 is 105, using year 1 as the base year. This means that, on average, the cost of goods and services is
A) 5% higher in year 1 than in year 2. B) 105% higher in year 1 than in year 2. C) 105% higher in year 2 than in year 1. D) 5% higher in year 2 than in year 1.