Assume that a firm's marginal cost is $10 and the elasticity of demand is -2. We can conclude that the firm's profit maximizing price is approximately
A) $20.
B) $5.
C) $10.
D) The answer cannot be determined without additional information.
A
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Why are state and local governments negatively affected by a rise in immigration?
a. Increased expenditures on education and welfare b. Additional requirements to comply with employment laws c. Increased administration costs from federal government d. Decreased influx of income and sales taxes
The Fed purchases German bonds from commercial banks. Which of the following best describes the impact on the Fed's and the Banking System's balance sheets resulting from this transaction?
A. The Fed's assets and liabilities do not change, only the compositions of the assets change. For the banking system, assets and liabilities increase. B. The Fed's assets and liabilities increase, the banking systems assets and liabilities decrease. C. The Fed's assets increase and its liabilities increase, for the banking system, the value of assets and liabilities do not change, only the composition of assets changes. D. The Fed's assets increase and its liabilities decrease, for the banking system, the value of assets and liabilities do not change, only the composition of assets changes.