The main decision for a profit-maximizing perfectly competitive firm is not what ________ but what ________.
A. price to charge; level of output to produce
B. level of output to produce; price to charge
C. level of output to produce; total revenue to achieve
D. price to charge; total cost to achieve
Answer: A
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The principle of comparative advantage states that
a. whoever has a comparative advantage in producing a good or service also has the absolute advantage b. whoever has an absolute advantage in producing a good or service also has the comparative advantage c. whoever can produce a good or service using fewer resources than another individual has the comparative advantage d. total production of every good or service can be greater if individuals specialize according to their comparative advantage e. comparative advantage is maximized if each individual specializes according to his or her absolute advantage
An economy is productive efficient if it produces
A) more than enough food to feed everyone. B) more goods and services in each successive year. C) maximum output with given resources and technology. D) enough output so that no one lives in poverty.
You are considering buying a share of stock in XYZ Corporation. At the end of years 1, 2, and 3 the stock will pay you a dividend of $15 . In addition, at the end of the third year you expect to sell the share of stock for $100 . If the interest rate is 3%, how much is the share of XYZ stock worth to you today?
a. $123.14 b. $133.94 c. $137.96 d. $145.00
The Fed seldom uses the reserve requirement ratio to influence the money supply. What is the reason for this?
A) It is difficult and costly for the Fed to monitor compliance. B) Frequent manipulation of reserve requirements would require bankers to constantly adjust their lending policies to changing requirements, which could be destabilizing for financial markets. C) The Fed would like to discourage banks from making loans indiscriminately and therefore sets just one standard. D) Reserves in excess of a certain amount will not be covered by the Federal Depository Insurance Corporation.