Curly told Larry about his new business venture: Curly pays Acme International $1,000 per month for supplies, works out of his apartment on his own computer and earns a monthly revenue of $1,500. Should Larry quit his job and do what Curly is doing?
A. Yes, as long as Larry has at least $1,000 in savings to get started.
B. Not if Larry is earning more than $500 per month at his current job.
C. Yes, as long as Larry can work out if his apartment and owns a computer.
D. Not unless Larry can borrow the $1,000 monthly payment at no interest.
Answer: B
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The output level is constant along any isoprofit line.
Answer the following statement true (T) or false (F)
For a natural monopoly, if price is equal to marginal social cost, then
A) the deadweight loss is as large as possible. B) the firm makes zero economic profit. C) there is no deadweight loss. D) there is no deadweight loss and the firm makes a positive economic profit.
Why do economists insist on emphasizing the difference between money and income? Why is this difference important in macroeconomics?
What will be an ideal response?
The word best associated with price elasticity of demand is
A) relative. B) total. C) absolute. D) unit.