Suppose a price searcher faces the following demand curve: At $100, $90, $80, $70, and $60, the quantity demanded is 1, 2, 3, 4, and 5 units respectively. If the firm's marginal cost is $40 at any level of output, it would maximize net revenues by
A) producing 5 units and charging $60.
B) producing 4 units and charging $70.
C) producing 3 units and charging $80.
D) producing 2 units and charging $90.
B
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Which of the following was not one of the likely causes of the productivity problem of the 1970s?
A. an increase in research and development spending B. a reduction in government regulation C. rapid growth in investment spending D. all of the above
A disadvantage associated with in-kind transfers to reduce poverty is that they
a. alter peoples' incentives, whereas a negative income tax does not alter peoples' incentives. b. do not allow poor families to make purchases based on their preferences. c. can only be distributed by the federal government. d. cannot restrict the group of recipients and some middle-class families may benefit from them.