Dunston Military Academy has an annual deficit of $250,000 . Its 1,000 students pay tuition of $10,000 each per year. The economics faculty has recommended solving the problem by recruiting additional athletes with $5,000 scholarships. Each additional athlete will cost the school $2,500 (equipment, etc.). Assuming the academy agrees, how many athletes are needed to eliminate the deficit?
a. Zero, the deficit cannot be eliminated by giving more scholarships.
b. 25
c. 50
d. 100
d
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If firms in an industry make output decisions that are partially based on the price and output decisions of their competitors, then these firms are in ________ market have ________ with the other firms in the market
A) an oligopoly; interdependence B) an oligopoly; no interdependence C) an oligopoly or monopolistically competitive; interdependence D) a monopolistically competitive; no interdependence
"Market power" is an expression used to indicate that a firm has
a. the power to sell a given output at whatever price it chooses. b. no freedom from the rigors of intense competition. c. a monopoly over the product it produces. d. enough market share to be somewhat insulated from competition.
A tax cut intended to increase aggregate demand is an example of
A. Fiscal stimulus. B. Fiscal restraint. C. Fiscal targeting. D. Monetary restraint.
Suppose your firm is operating in a perfectly competitive market, and that the minimum average variable cost of producing your good is $30. If the price of the good is $32, your firm should:
A. not produce anything since the price is above the minimum of average variable cost. B. not consider price when determining the amount to sell. C. supply the amount of the good where the marginal cost of production is equal to $32. D. supply the amount of the good where the marginal cost of production is $30.