Imagine you own a machine that produces perfectly authentic and legal $100 bills. You would use this machine until:
a. the bills became worthless.
b. the total cost began to fall.
c. the marginal cost was $100.
d. the variable cost began to rise.
e. the marginal revenue began to fall.
c
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"Market clearing" refers to the case where
A) the purchase and sale plans of buyers and sellers are fully coordinated. B) quantity demanded equals quantity supplied. C) there is neither a shortage nor surplus of a good. D) all of the above.
Suppose the price of a can was $5.14. In this case, to maximize its profit the firm illustrated in the figure above would
A) increase its production and would make an economic profit. B) not change its production and would make zero economic profit. C) not change its production and would make an economic profit. D) increase its production and would incur an economic loss. E) not change its production and would incur an economic loss.
If real GDP per person is growing at 4 percent per year, approximately how many years will it take to double?
A) 17.5 B) 25 C) 4 D) 8
If total revenue exceeds fixed cost, a firm
A) is making short-run profits. B) should produce in the short run. C) has covered its variable cost. D) may or may not produce in the short run, depending on whether total revenue covers variable cost.