Refer to Figure 12-1. If the firm is producing 700 units, what is the amount of its profit or loss?

A) profit equivalent to the area A
B) loss equivalent to the area A
C) loss of $280
D) There is insufficient information to answer the question.

D

Economics

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If the multiplier is 10 and income increases by $1000, then saving will increase by

A) $90. B) $900. C) $100. D) $1000.

Economics

Suppose 10 citizens each derive marginal benefit from traffic lights according to the function MB = 10 - Q. If traffic lights cost $10 each to produce, what is the efficient quantity of traffic lights?

A) 9 traffic lights B) 12 traffic lights C) 8 traffic lights D) 1 traffic light

Economics