If Tiger Toys Faces a Demand Curve of P =

question 10

Multiple Choice

If Tiger Toys faces a demand curve of P = 85 - .25Q and a MC = ATC = 20, then the economic profits would be:

• A) $130.00.
• B) $6,825.00.
• C) $2,600.00.
• D) $4,225.00.

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Definitions:

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A type of inflation caused by an increase in the cost of production inputs, leading to a decrease in aggregate supply in the economy.

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The cost per barrel of crude oil, influenced by global supply and demand dynamics, geopolitical events, and market speculation.

Great Depression

A severe worldwide economic crisis that took place during the 1930s, marked by high unemployment, falling prices, and failed businesses, leading to widespread poverty.