Refer to Figure 12-6. Which of the following statements is true?
A) Jason should produce where MC equals $3 (point d) where he will minimize his losses.
B) Jason cannot earn a profit from selling any number of apples.
C) Jason should produce where MC equals $3 (point d) where he will maximize his profit.
D) Jason should produce where the distance between MC and his demand curve is greatest (point b).
C
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Which British colony in North America was the last to be founded, and was designed to assist those who owed debts in the Old World?
a. Georgia b. Rhode Island c. Florida d. Pennsylvania.
Suppose you win a small lottery and you are given the following choice: You can receive (1) an immediate payment of $10,000 or (2) two annual payments, each in the amount of $5,200, with the first payment coming one year from now, and the second payment coming two years from now. You would choose to take the immediate payment of $10,000 if the interest rate is
a. 2 percent, but not if the interest rate is 1 percent. b. 3 percent, but not if the interest rate is 2 percent. c. 4 percent, but not if the interest rate is 3 percent. d. 5 percent, but not if the interest rate is 4 percent.
Suppose that at the prevailing euro-dollar exchange rate there is an excess demand for dollars. To stabilize exchange rates, the United States might
A. Raise interest rates. B. Raise taxes. C. Reduce government spending. D. Decrease trade restrictions on euro-priced goods.
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.