Suppose the marginal cost of a piece of candy is given by MCc = 2Qc and the marginal cost of a desk is MCd = 4 + 4Qd. The current production levels are 20 pieces of candy and 4 desks. The marginal rate of transformation (MRT) is

The interest rate in Canada rises while the interest rate in the United States does not change. The

A) demand curve for Canadian dollars will shift leftward. B) demand curve for Canadian dollars will shift rightward. C) demand curve for U.S. dollars will shift rightward. D) demand curves for both Canadian and U.S. dollars will remain unchanged.

The above figure shows the demand and cost curves facing a monopolist. The monopoly maximizes profit by setting price equal to

A) $100. B) $200. C) $300. D) $400.