Refer to Figure 9.9. At free trade, domestic consumption is
A) 5500; domestic production is 1000; imports are 4500.
B) 5000; domestic production is 2000; imports are 3000.
C) 4000; domestic production is 4000; imports are 0.
D) 2000; domestic production is 5000; imports are 3000.
E) 1000; domestic production is 5500; imports are 4500.
A
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A monopolist faces a demand curve given by P = 20 - Q and has total costs given by TC = Q2. By using a bit of calculus, you should be able to determine that the firm's marginal revenue is MR = 20 - 2Q and its marginal cost is MC = 2Q. What is its profit-maximizing price?
a. $20 b. $15 c. $10 d. $5
Income taxes paid by corporations are
A) the major source of revenue for the federal government. B) the major source of revenue for state governments. C) the major source of revenue for local governments. D) about 9 percent of the federal government's revenue. E) the major source of expenditure by the federal government.