Imagine you own a perfectly competitive firm. Calculate your company’s total revenue, average revenue, and marginal revenue for a year, using hypothetical numbers. Do not use examples or numbers from the text.
What will be an ideal response?
but should show a thorough understanding of how to calculate a firm’s total revenue, average revenue, and marginal revenue. For example, a firm might charge $8 for each unit it produces. During a year, it sell 100 units. As a result, the company makes a total revenue of $800 ($8 x 100 = $800). The average revenue would be $8 per unit ($800 ÷ 100 = $8). Marginal revenue would also be $8 because as the firm adds one additional unit of output, total revenue will always increase by the amount of the product price.
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Which of the following was a country that ran large deficits in the mid-1990s, and plunged into deep recession in 1997 and 1998 when foreign investors became concerned about the health of these economies, and quickly pulled their money out of stock and bond markets, real estate, and banks?
a. North Korea b. Argentina c. Thailand d. India
What is a downside of trade protection?
a. Instead of protecting U.S. interests and giving domestic manufacturing an advantage over items manufactured elsewhere, it can have the unintended effect of driving the manufacturing completely out of the country. b. It can give U.S. interests and domestic manufacturing too much of an advantage over items manufactured elsewhere, having the unintended effect of driving the manufacturing completely out of the country. c. It can give U.S. interests and domestic manufacturing too much of an advantage over items manufactured elsewhere, having the unintended effect of bringing more manufacturing into the country than can be handled. d. Instead of protecting U.S. interests and giving domestic manufacturing an advantage over items manufactured elsewhere, it can have the unintended effect of bringing more manufacturing into the country than can be handled.