A firm sets its output where
A) marginal profit minus marginal cost equals zero (MP - MC = 0).
B) marginal revenue minus marginal profit equals zero (MR - MP = 0).
C) marginal revenue minus marginal cost equals zero (MR - MC = 0).
D) marginal revenue minus marginal cost is greater than zero (MR - MC > 0)
C
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Suppose you came across the following headline in a story of a daily newspaper: "Automobile prices are so high right now that there must be a shortage. As a consequence not everyone who needs an automobile will be able to buy one"
Is this statement necessarily correct?
Microeconomics
a. addresses scarcity from a global perspective b. examines how individuals, households, and firms make economic decisions c. is purely theoretical and has little value in explaining real-world phenomena d. focuses on what is happening in the economy as a whole e. answers the fundamental economic questions of how, when, where, and why
Italy has a comparative advantage in the production of which product?
The basic economic problem is a situation of
A) limited resources and unlimited wants. B) both limited resources and limited wants. C) limited incomes and unlimited choices. D) unlimited incomes and limited choices.