
Figure 6.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $40 and the firm is currently producing the profit-maximizing output level, the firm's profit is:
A. $7,200.
B. $9,000.
C. $27,000.
D. $36,000.
Answer: B
You might also like to view...
If the elasticity of demand for the latest American Idol album is 1.4, this means
A. few substitutes for the American Idol album exist. B. a 10% decrease in the price leads to a 140% increase in quantity demanded. C. a 5% increase in the price leads to a 7% decrease in quantity demanded. D. a 1% increase in the price leads to a 14% decrease in quantity demanded.
Which of the following is an example of a pure public good?
A) a lighthouse B) burritos C) a high school football game D) redwood forests
Assuming that rational expectations theory does not hold, if a central banks attempts to reduce the inflation rate what happens to the unemployment rate in the short-run?
A stronger U.S. dollar leads to ________ in SRAS and ________ in AD simultaneously.
A. a leftward shift; a rightward shift B. a leftward shift; a leftward shift C. a rightward shift; a leftward shift D. a rightward shift; a rightward shift