Tombstones are produced in a competitive price-searcher market. One producer, Rolling Stones, sells 20 tombstones a week at a price of $500 each. Its average total cost is $600 . From this information, we can conclude
a. new tombstone firms will want to enter.
b. this producer is losing $2,000 a week.
c. this producer is making an economic profit of $400.
d. this producer is setting MR = MC.
e. this producer should increase production.
B
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The demand curve for Widgets is given by
QD = 5800 - 200p + 30pG where QD is the quantity of widgets demanded, y is the per capita income and pG is the price of Gizmos. The supply of Widgets is given by: QS = 250p - 1250 a. Solve for the equilibrium price and quantity of widgets in terms of the price of Gizmos. b. Compute the comparative static derivatives for the changes in the equilibrium price and quantity of Widgets with respect to a change in the price of Gizmos.
In 2010 the unemployment rate in Zimbabwe was 95%
a. True b. False