Eco Energy is a monopolistically competitive producer of a sports beverage called Power On. Table 13-2 shows the firm's demand and cost schedules. Refer to Table 13-2. What is the marginal profit from producing and selling the 5th case?
A. $10
B. $20
C. $30
D. $40
Answer: B. $20
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Refer to Figure 27-8. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?
A) increase income taxes B) decrease government purchases C) increase government purchases D) sell Treasury bills
A McDonald's franchise is an example of
A) horizontal integration. B) quasi-vertical integration. C) a vertical merger. D) None of the above.
In an oligopoly, each firm knows that its profits
a. depend only on how much output it produces. b. depend only on how much output its rival firms produce. c. depend on both how much output it produces and how much output its rival firms produce. d. will be zero in the long run because of free entry.
Regulation in the labor market is not necessarily undesirable, but should be subject to the:
A. principle of comparative advantage. B. principle of increasing opportunity cost. C. cost-benefit principle. D. scarcity principle.