If the consumption function is C = 25 + 0.9y and income increases by $100, then autonomous consumption spending will be

You run a construction firm with unique capabilities. An architecture firm you have worked for in the past is working on a proposal for a new building that could earn them huge profits. They are considering one of two unique design concepts that either

exploit your capabilities or those of another contractor with a different set of capabilities. They contact you to determine if you could actually get the job done and to get a quote to be included in their bid. The client makes a few changes that will have a small impact on your operations but awards the contract to the architect's plan that includes you. How does the awarding of the contract with changes affect how much your final fee for your services?

Suppose a firm finds it is better off operating than shutting down in the short run. What is true at the quantity at which marginal cost equals marginal revenue?

a. total cost equals total revenue b. average cost equals average revenue c. profit is maximized d. revenue is maximized e. cost is minimized