Zoe's Bakery operates in a perfectly competitive industry. Suppose that when the market price is $3.50, the profit-maximizing output level of pastries is 100 units, with average total cost of $4, and average variable cost of $3. From this we know Zoe's marginal cost is , and her short-run profits are .

As the marginal propensity to consume (mpc) increases, the multiplier remains the same. increases. decreases. as the marginal propensity to save (mps) increases, the multiplier decreases. increases. remains the same. if the marginal propensity to consume is 0.30, what is the multiplier, assuming there are no taxes or imports? round to the tenths place. given the multiplier that you calculated, by how much will gross domestic product (gdp) increase when there is a $1,000 increase in government spending? $

Avx home entertainment, inc., recently began a “no-hassles” return policy. a sample of 500 customers who recently returned items showed 400 thought the policy was fair, 32 thought it took too long to complete the transaction, and the rest had no opinion. on the basis of this information, make an inference about customer reaction to the new policy. (round your answers to 1 decimal place.)

Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%