Brittany provides manicures at the only salon in town. Her marginal cost is constant at $5 per client, her fixed cost is $25 per day, and she is able to do 8 manicures per day. On a given day, half of her clients are willing to pay $15 for a manicure; half are willing to pay only $10 . If she charges $15 for those willing to pay a higher price and $10 to her other clients, then her maximum daily
profit equals
a. $55
b. $100
c. $60
d. $35
e. $75
D
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Medicaid is the most expensive program that the government runs that provides benefits to the poor.
A. True B. False C. Uncertain
In general, a society will benefit more, the more interdependent it is
a. True b. False
Consumers and producers face each other in the many markets of our economy, and in most of these markets,
a. price floors dominate b. price ceilings dominate c. market prices dominate d. government intervention is commonplace e. parity exists between the farm and nonfarm goods
Arthur sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $700. Donita sells the dresses for $1200 to kids attending the prom. The total contribution to GDP of this series of transactions is:
a) $1200 b) $500 c) $2300 d) $1100