In the short run, a firm’s economic loss or profit is found by comparing what?
a. Price to marginal cost
b. Price to marginal revenue
c. Price to average total cost
d. Price to quantity demanded
c. Price to average total cost
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What function is money serving when you use it when you go shopping?
A. a store of value B. a medium of exchange C. a unit of account D. a medium of deferred payment
Of the types of business organizations in the United States, corporations account for ________ percentage of revenues and ________ percentage of profits
A) the largest; the largest B) the smallest; the largest C) neither the largest nor smallest; the largest D) largest; neither the largest nor smallest
In the efficiency wage theory, unemployment is caused by
a. firms paying higher than the equilibrium wage to increase workers’ productivity. b. firms paying less than the equilibrium wage to increase their profit. c. firms paying the equilibrium wage. d. workers insisting on being paid more than the equilibrium wage.
Which of the following provides the best explanation for diseconomies of scale?
A. Increased specialization B. Indivisible setup costs C. Diminishing marginal productivity D. Monitoring costs