<p>that is true, but he is asking for maximizing revenue, not profit.</p>
<p>to maximize revenue, its the point where MR = 0</p>
<p>My mistake, misread his query. Monopolies maximize revenue where the MR curve crosses the horizontal axis.</p>
<p>Eeh, so scared for tomorrow :(</p>
<p>Any links to Micro MC?</p>
<p>yeah im using sparkcharts to do a quick review & pinpoint what i really need to study. im taking both because i took a semester course for each. our teacher gave us so many practice tests but i haven’t gotten much done yet. today’s going to be fun. lol</p>
<p>I could really use the 2005 Microeconomics exam right now? Does anybody have a link they could pm to me. My teacher doesn’t hand out past tests for practice :/</p>
<p>yea ^ can someone pm if they have a released test or send me a link. i have a 1995 one and another one that i’m willing to trade.</p>
<p>Suppose that autonomous consumption is $400 and that the marginal propensity to consume is .8. If disposable income increases by $1200, consumption spending will increase by
A 1600
B 1360
C 1200
D 960
E 400</p>
<p>Can somebody explain this to me? I don’t get it</p>
<p>If I miss more than 8-10 questions on the MC tomorrow I will be very disappointed in myself. The 2005 MC seemed really easy to me so hopefully it is a good representation of what the test has in store.</p>
<p>
Your disposable income increases $1200, and you spend 8/10’s of every dollar you earn.</p>
<p>so what is the correct answer??</p>
<p>D. 960</p>
<p>(1200)x(.80)</p>
<p>isn’t it
1/MPC
1/0.8= 1.25
then MPS is 0.2
you save 240 and spend 960
then 960*1.25 + 400=1600 ??</p>
<p>Thanks Jersey13! I Get it now. D is in fact the correct answer.</p>
<p>When the average price level increases by 10 percent in a given year, which of the following must increase by 10 percent for Real output to remain constant?
a. real national income
b. nominal national income
c. the international value of the currency
d. real interest rates
e. nominal interest rates</p>
<p>Nominal national income.</p>
<p>When there is inflation, a country’s currency depreciates or appreciates?</p>
<p>Depreciates. I’m not even studying for or taking Macro and I know that…</p>
<p>New money essentially steals value from existing money.</p>
<p>is that because AD shifts out 10% and AD includes nominal national income?</p>
<p>i don’t quite understand the question and it would be nice to see an explanation ;)</p>
<p>hard frq:
if a pefectly competitive firm is operating in a constant-cost industry, and has reached long-run equilibrium, what will happen to the profit-maximizing level of output in the longrun if the govt. imposes a per unit tax of $2? Explain. </p>
<hr>
<p>Still looking for ap micro exams!</p>
<p>Marginal cost would shift to the left, price would remain the same, but output would decrease (nothing would change if the tax was a lump sum tax - marginal cost shifts because it’s a per-unit tax so the tax is on every additional unit produced).</p>
<p>Can someone PM me the 2005 Micro test?</p>
<p>Also, how do you determine who bears what brunt of the tax?</p>