The table above gives the total revenue and total cost for a perfectly competitive firm producing chocolate chip cookies. If the firm is producing 1 pound of cookies, to maximize its profit it will
A) increase its output.
B) decrease its output.
C) continue producing 1 pound of cookies.
D) shut down.
A
You might also like to view...
Economists Leigh Linden and Jonah Rockoff researched the effect of the proximity of the residences of registered sex offenders to the values of other homes in the same area and found that the effects of having a sex offender in the neighborhood
A) are widespread and tend to remain unchanged with distance. B) are virtually nonexistent. C) reduce the average home value in the area by 50 percent. D) are highly localized and diminish rapidly with distance.
The figure above shows the market for milk. If the efficient quantity of milk is produced, the consumer surplus is
A) $100. B) $400. C) $200. D) $600.
Which of the following is NOT part of an economy's financial markets?
A. The stock market B. Banks and brokerage firms C. Political action committees D. The residential mortgage market
How does an increase in a country's exchange rate affect its balance of trade?
A) An increase in the exchange rate raises imports, reduces exports, and reduces the balance of trade. B) An increase in the exchange rate reduces imports, raises exports, and reduces the balance of trade. C) An increase in the exchange rate reduces imports, raises exports, and increases the balance of trade. D) An increase in the exchange rate raises imports, reduces exports, and increases the balance of trade.