Economic profit equals gross earnings minus the firm's direct costs
a. True
b. False
Indicate whether the statement is true or false
False
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More bidders tend to increase the selling price in a second-price auction because
a. bidders bid less aggressively b. the true value of the losers is lower c. the true values of the losers is higher d. Both A&C
Which of the following is likely to cause an outward shift of a production possibility curve?
a. An increase in the price of the commodity represented on the horizontal axis b. A fall in the cost of producing the commodity represented on the vertical axis c. An improvement in the available technology d. A fall in the supply of resources e. An increase in the supply of unskilled workers
Ethan washes and irons his own shirts. Sophia, his boss, sends her clothes to a laundry. Which is the most plausible economic explanation for this difference?
a. Ethan must enjoy ironing more than Sophia does. b. Ethan must be better at ironing than Sophia is. c. The opportunity cost of ironing is greater for Ethan. d. Sophia has a higher opportunity cost of laundering her clothes than Ethan does.
Exhibit 7-11 A firm's cost and marginal revenue curves
?
In Exhibit 7-11, the profit-maximizing output level at the price of $8 is:
A. 0. B. 7. C. 8. D. 10.