Refer to the data provided in Table 9.1 below to answer the question(s) that follow.
Table 9.1
Refer to Table 9.1. If the market price is $10, then for this firm to maximize profits it should produce ________ unit(s) of output.
A. zero
B. one
C. two
D. three
Answer: A
You might also like to view...
A market which only allows only one firm to operate at lowest average cost is called a(n)
a. natural monopoly. b. scale industry. c. increasing returns industry. d. large scale industry.
In 1968, economist Milton Friedman published a paper criticizing the Phillips curve on the grounds that
a. it seemed to work for wages but not for inflation. b. monetary policy was ineffective in combating inflation. c. the Phillips curve did not apply in the long run. d. Phillips had made errors in collecting his data.
A manager wishes to estimate an average cost equation of the following form: C = a + bQ + cQ2whereQ is the level of output. Letting Z = Q2 and using least-squares estimation, the manager obtains the following computer output: 
Given the above information, which of the parameter estimates are statistically significant at the 1% significance level?
A. All parameter estimates except b? are statistically significant. B. â is not statistically significant, but all the rest of the parameter estimates are significant. C. c? is not statistically significant, but all the rest of the parameter estimates are significant. D. All parameter estimates are statistically significant.
What is the relationship between the bowed out shape of the production possibilities frontier and the increasing opportunity cost of a good as more of it is produced?
What will be an ideal response?