Economic profit sends a signal to entrepreneurs by telling them where
A) price exceeds marginal cost.
B) there are many buyers and many sellers.
C) the shutdown point is.
D) an above normal return on investment can be earned.
D
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A beautiful garden that increases the value of the homes in the neighborhood is considered:
A. an inferior good. B. a positive externality. C. a negative externality. D. a normal good.
When the marginal benefit equals the marginal cost of the last unit sold in a competitive market
A) producer surplus is equal to consumer surplus. B) the net benefit of consumers is equal to the net benefit of producers. C) an economically efficient level of output is produced. D) total benefit is equal to total cost.
The historical data on velocity shows that velocity for
a. M1 has fallen since 1929 and has become more stable since 1981. b. M1 has risen since 1949 and has become more volatile since 1981. c. both M1 and M2 have increased since 1949 but have become more stable since 1979. d. both M1 and M2 have declined since 1949.
Suppose a certain good provides an external benefit. If the private cost of the last unit of the good that was produced is equal to the social value of that unit, then the sum of producer and consumer surplus is maximized
a. True b. False Indicate whether the statement is true or false