Author Question: A price searcher faces the following demand curve: At 9, 8, 7, and 6, the quantity demanded is 10, ... (Read 61 times)

mwit1967 · **on:** Jun 29, 2018

A price searcher faces the following demand curve: At 9, 8, 7, and 6, the quantity demanded is 10, 20, 30, and 40 units, respectively. If the firm's marginal cost is 70 at any level of output, it would maximize net revenues by

A) producing 10 units and charging 9.
B) producing 20 units and charging 8.
C) producing 30 units and charging 7.
D) producing 40 units and charging 6.
E) charging 70 plus markup.

Question 2

Joe Doakes is running for reelection. Economic theory predicts he has a strong incentive to

A) heavily discount the value of all future costs of his policies.
B) try to provide as many benefits to his constituents as possible prior to the next election day.
C) do both A and B above.
D) do none of the above.