The firm in the above figure has an economic profit of ________
A) $0
B) $80
C) $160
D) more than $161
E) less than zero, that is, the firm has an economic loss
A
Economics
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If a household is credit rationed, the MPC out of current disposable income is ________ compared to the MPC out of current disposable income if a household is not credit rationed
A) higher B) lower C) the same D) negative
Economics
Suppose Cournot duopolist firms operate with each having a cost of 30qi (i = 1,2 ) so that each firm's marginal cost is 30. The inverse market demand curve is P = 120 - Q where Q = q1 + q2. Suppose there were no barriers to entry and firms continued to enter so long as there were positive economic profits. At the Nash-Cournot equilibrium, the price, P, is
A) 30. B) 45. C) 60. D) 90.
Economics