Answer the following statements true (T) or false (F)
1) Refer to the diagram. This firm will maximize profits by producing output D.
2) Refer to the diagram. At the profit-maximizing output, total revenue will be 0GLD.
3) Refer to the diagram. At any price below R the firm will shut down in the short run.
4)Refer to the diagram. If demand fell to the level of FNJ, there would be no output at which the firm could realize an economic profit.
5) Refer to the diagram. If the firm produced D units of output at price G,
1) F
2) T
3) T
4) F
5) T
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On the forms to open a checking account, automatic bill paying is often the default option, with a box to check if one wants to opt out. This is an example of a:
A. push. B. flawed assumption. C. shadow price. D. nudge.
A household ________ as long as the utility from the good's consumption is less than its market price.
A. will only buy a good B. should never sell a good C. will always buy a good D. should never buy a good
If a monopolist is producing the quantity at which marginal revenue equals marginal cost, it should
A) continue to produce this amount if it wants to maximize profits. B) reduce output if it wants to maximize profits. C) increase price and keep output unchanged if it wants to maximize profits. D) increase output if it wants to maximize profits.
The above figure shows the U.S. market for replacement cell phone batteries. Suppose the U.S. government imposes the tariff illustrated in the figure
The tariff is equal to ________, and the price U.S. consumers pay _______compared to the price paid when there was free trade. A) $2; increases B) $2; decreases C) $14; increases D) $14; decreases E) $12; increases