In the short run, a perfectly competitive firm can make a profit, a loss, or shut down
a. True
b. False
Indicate whether the statement is true or false
True
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What would be the actuarially fair premium for an insurance policy that pays $1,000 in the event of a loss that has a 25% chance of occurring?
A. $250 B. $750 C. $1,250 D. $500
Refer to the information provided in Figure 4.1 below to answer the question(s) that follow.
Figure 4.1Refer to Figure 4.1. At the world price of 30 cents per apple, the United States imports ________ million apples per day.
A. 2 B. 4 C. 6 D. 10
Is the profit-maximizing price-taking firm able to mark up price above the marginal costs of production at the profit-maximizing level of output? Why or why not?
What will be an ideal response?
A consumer may increase her saving by
A) working more hours and consuming more goods in the present period. B) working more hours and consuming fewer goods in the present period. C) working fewer hours and consuming more goods in the present period. D) working fewer hours and consuming fewer goods in the present period.