Ron's Hamburger Joint is the only restaurant in town. The above figure represents Ron's cost, demand, and marginal revenue curves. Ron operates as a single-price monopoly
a) How many hamburgers does Ron produce?
b) What price does Ron charge for a hamburger?
c) What is Ron's total revenue?
d) What is his total cost?
e) What is Ron's economic profit?
a) Ron produces 20 hamburgers per hour.
b) The price is $6 for a hamburger.
c) Ron's total revenue is $120 an hour.
d) Ron's total cost is $80 an hour.
e) Ron's economic profit is $40 an hour.
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The production of electricity creates pollution. When deciding how much electricity to buy, customers ________ the cost of pollution. When deciding how much electricity to buy, producers ________ the cost of pollution
A) take into account; take into account B) do not take into account; do not take into account C) take into account; do not take into account D) do not take into account; take into account E) None of the above answers is correct.
Everything else held constant, in the market for reserves, decreases in the interest rate paid on excess reserves affect the federal funds rate
A) when the funds rate is below the interest rate paid on excess reserves. B) when the funds rate equals the interest rate paid on excess reserves. C) when the funds rate is below the discount rate. D) when the funds rate equals the discount rate.