Suppose a profit-maximizing firm in a perfectly competitive market is collecting $1,999 in total revenues. If the total cost of its fixed factors of production falls from $500 to $400, the firm will:
A. lower its price.
B. earn smaller profits or larger losses.
C. expand its output.
D. earn greater profits or smaller losses.
Answer: D
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The demand for loanable funds curve illustrates
A) the quantity of loanable funds demanded at any given level of disposable income. B) how the quantity of loanable funds demanded changes when the people's expectations about their future income changes. C) how the quantity of loanable funds demanded changes when wealth changes. D) the quantity of loanable funds demanded at any given level of the real interest rate. E) the quantity of loanable funds supplied to the loanable funds market at any given level of disposable income.
Technological progress has made it possible for firms such as Apple and Alivecor to develop small electronic devices, including smartwatches, smartphones, and products that can be attached to the smartwatches and smartphones, to serve consumers who
have become more health conscious and wish to monitor various health conditions. These firms are reacting to which of the three key economic ideas? A) people are rational B) people respond to economic incentives C) firms attempt to maximize revenues D) optimal decisions are made at the margin
What is a commitment device?
What will be an ideal response?
An individual's labor supply curve shows
A) the maximum wage rates offered to that individual by various potential employers. B) the relationship between wages and the quantity of labor that a firm is willing to employ. C) the relationship between wages and the quantity of labor that she is willing to supply. D) the relationship between the quantity of hours worked and total income earned by that individual.