Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is $17.50, what is the firm's economic profit?
A) zero
B) $2.50 per hour
C) $12.50 per hour
D) -$10.00 per hour
B
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If there is an advancement in the technology used to produce a product, what is the likely effect it may have on the supply?
A) The company would not change its manufacturing. B) It would increase the supply. C) It would decrease the supply. D) More people would be needed to produce the product.
Under the Bretton Woods system the international reserve currency was the
A) U.S. dollar. B) British pound. C) German mark. D) Japanese yen.
A consumer is in equilibrium when:
a. his or her marginal utility derived from each good is maximized. b. each dollar spent on each item provides more and more satisfaction. c. each dollar spent on each item provides less and less satisfaction. d. the last dollar spent on each item provides the same additional satisfaction as that dollar would if spent on any other item. e. his or her average utility for each item is the same.
A firm's incentive to compare marginal revenue and marginal cost is an application of the principle that rational people think at the margin
a. True b. False Indicate whether the statement is true or false