Refer to the given data. If government provides a per-unit subsidy of $2 to suppliers of this product, equilibrium price and quantity would be:
A. $9 and 3,000.
B. $7.50 and 2,250.
C. $8.50 and 2,750.
D. $7 and 3,000.
D. $7 and 3,000.
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A perfectly competitive firm will maximize profits when
A) average cost is greater than marginal revenue. B) marginal cost is greater than marginal revenue. C) marginal cost is equal to marginal revenue. D) average cost is equal to average revenue.
An artificially scarce good is:
A. rival in consumption and excludable. B. not rival in consumption, but excludable. C. rival in consumption, but not excludable. D. not rival in consumption and not excludable.
President Kennedy's team of economic advisers included such prominent economists as a. James Tobin and Robert Solow
b. N. Gregory Mankiw and Paul Krugman. c. John Maynard Keynes and Friedrich Hayek. d. Austan Goolsbee and Justin Wolfers.
The 3 key economic questions include all of the following except:
A. "what products do we produce?" B. "how do we produce these products?" C. "where should these products be produced?" D. "who consumes the products?"