A firm can use its demand curve to calculate
A. total revenue.
B. economic profit.
C. production costs.
D. accounting profit.
Answer: A
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P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. 
Given the information in this decision tree, if QRS-TV announces that it will air a reality show, it can expect to:
A. lose $5 million. B. earn $20 million. C. earn $5 million. D. earn $10 million.
The Romer model is distinct from the Solow model in that the former assumes that ________
A) technology is fixed B) an increase in price affects quantity demanded, rather than demand C) some labor is devoted to producing new technology D) output per worker is fixed
A lower domestic price level raises aggregate expenditures and, therefore, shifts the aggregate demand curve to the right
a. True b. False Indicate whether the statement is true or false
Figure 5-5
Figure 5-5 shows a consumer budget line for French fries and hamburgers. The household allocates a budget for these two goods.. If the price of an order of french fries is $2, how much income is allocated to fries and burgers combined?
a.
$2
b.
$4
c.
$20
d.
$40