Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $6.00; AVC = $4.00; MC = $3.50; MR = $3.50. The firm should
A) increase output.
B) increase price.
C) remain at the same position.
D) shut down.
Answer: D
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Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The price the seller receives for the product after the tax is imposed on the buyer is
A. $7. B. $5. C. $8. D. $3.
If opportunity costs are ________, the production possibilities frontier would be graphed as a negatively sloped straight line
A) increasing B) constant C) decreasing D) negative
According to data on GDP growth between 1980 and 2010,
a. poor nations stagnated, while the rich nations continued to grow. b. poor nations grew rapidly, while the rich nations stagnated. c. most of the world's rapidly growing countries were located in Africa. d. many poor nations grew more rapidly than wealthy nations, while others continued to stagnate.
Describe the trends in total and per capita water use, energy consumption, and trash generation in the United States from 1950 to 2010. What do they indicate about resource use?
What will be an ideal response?