The point of maximum profit for a business firm is where:
a. TR = TC.
b. MR = MC.
c. P = AC.
d. MR = AR.
b
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According to interest rate parity, if the interest rate is 1 percent in the European Union and the euro is expected to appreciate 3 percent, the comparable interest rate in the United States will be
A) 4 percent. B) 3 percent. C) 2 percent. D) 1 percent.
If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals: a. 8 percent
b. 20 percent. c. 25 percent. d. 32 percent.
Which of the following is not a barrier to entry?
A. Patents. B. X-inefficiency. C. Economies of scale. D. Ownership of essential resources.
Under a pure price system, the decision of resource allocation is made by
A. those who have the right to vote in government elections. B. individuals who own the resources. C. the head of the government. D. no one.