Sue's Sea Shells by the Sea Shore is a perfectly competitive firm selling sea shells at the market price of 2 per dozen. Sue's Sea Shells by the Sea Shore has fixed costs of 40 per day and a variable cost schedule in the table above.
The profit-maximizing level of output for Sue's Sea Shells by the Sea Shore is A) 202 dozen sea shells by the sea shore per day.
B) 204 dozen sea shells by the sea shore per day.
C) 205 dozen sea shells by the sea shore per day.
D) 206 dozen sea shells by the sea shore per day.
Ques. 2If green bikes and brown bikes are perfect substitutes, the corresponding indifference curves
A) are horizontal.
B) intersect each other.
C) are vertical.
D) have constant slope.
Ques. 3Explain the difference between marginal cost and marginal benefit.
What will be an ideal response?
Ques. 4In the above figure, a single-price monopolist charges a price of ________, resulting in total revenue equal to area ________.
A) 10; hbcd
B) 20; fjem
C) 10; fbcg
D) 30; fbcg
Ques. 5A firm's markup is the amount by which ________ exceeds ________.
A) price; average total cost
B) price; marginal cost
C) average total cost; marginal cost
D) price; average variable cost
Ques. 6A bank reports reserves of 100,000, government securities of 50,000, loans of 750,000, and checkable deposits of 900,000. The desired reserve ratio is 10 percent. What is the amount of excess reserves for this bank? Show your work.
What will be an ideal response?
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