Use the Following to Answer Questions

question 278

Multiple Choice

Use the following to answer questions:
-(Table: Demand Schedule for Gadgets) Look at the table Demand Schedule for Gadgets. The market for gadgets consists of two producers, Margaret and Ray. Each firm can produce gadgets at a marginal cost of $2 and no fixed cost. If industry output is 300 gadgets produced by Margaret and 200 gadgets produced by Ray and if Ray decides to increase output by 100, industry price will be:

• A) $4.
• B) $3.
• C) $2.
• D) $1.

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Definitions:

Net Investment

Gross investment minus depreciation.

Gross Private Domestic Investment

The aggregate amount of investment in physical assets, such as buildings and machinery, by the private sector within a country.

Military Goods

Products and services specifically designed, manufactured, and supplied for use by armed forces.

Intermediate Products

These are goods that are used as inputs in the production of other goods and services, not intended for final consumption.