Suppose there are 1000 identical wheat farmers. For each, TC = 10 + q2 Derive the market supply curve
What will be an ideal response?
For each MC = 2q and AVC = q. Thus MC > AVC for all levels of output. The firm sets p = 2q or q = 0.5p. Since there are 1000 firms each producing q, market supply equals Q = 500p.
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The principal cause of the decline in the AFDC caseload between 1993 and 1997 was state-initiated reforms
Indicate whether the statement is true or false
If the coupon payment on a bond is $500 and the coupon rate is 5%, then what is the face value of the bond?
A. $10,667 B. $10,000 C. $1,000 D. $678.40 E. There is not enough information provided to answer this question.
The classical model predicts that, in the short-run, a tax cut financed by an increase in the money supply would
a. leave output and the price level unchanged. b. increase the price level but leave output unchanged. c. increase output but and reduce the price level. d. increase output and the price level by increasing aggregate demand. e. None of the above.
The international agreement signed in 1947 to promote world trade by reducing tariffs and other barriers to international trade was called
A) GATT. B) NAFTA. C) WTO. D) Bretton-Woods agreement.