Refer to the above figure. The profit-maximizing price for this firm is
A) P1.
B) P2.
C) P3.
D) P4.
A
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In the short run, suppose average total cost is a straight line and marginal cost is positive and constant. Then, we know that fixed costs must:
A) be declining with output. B) be positive. C) equal zero. D) We do not have enough information to answer this question.
Product-specific services are most likely to be valuable for which of the following goods?
A) a professional camera B) a calendar C) a picture frame D) photo printing paper
In Table 13-1, if the required reserve ratio is 10 percent, what will happen to the money supply? Use the oversimplified money multiplier in your calculations
a. The money supply will decrease by $100 million. b. The money supply will decrease by $10 million. c. The money supply will not change. d. The money supply will increase by $10 million. e. The money supply will increase by $100 million.
If the real interest rate were -7%, this is:
a. A clear sign that it is better to borrow than to lend. b. Not clear sign that it is better to borrow than to lend because this decision depends on expected inflation. c. Actually, it is impossible for the real interest rate to be -7% because the real interest rate can approach zero, but it can never be less than zero. d. A clear sign that it is better to lend than to borrow.