If a perfectly competitive firm's average total cost is less than the price, then the firm
A) incurs an economic loss.
B) makes an economic profit.
C) makes zero economic profit.
D) makes either zero economic profit or an economic profit depending on whether the marginal revenue is equal to or greater than the price.
E) None of the above answers is correct because the relationship between the price and average total cost has nothing to do with the firm's profit.
B
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Marginal cost is the change in the:
A) total cost associated with producing one more unit of output. B) average total cost associated with producing one more unit of output C) average variable cost associated with producing one more unit of output. D) opportunity cost associated with producing one more unit of output.
A merger will be challenged by the FTC in a market where the Herfindahl-Hirschman Index (HHI) is ________, and the merger would increase it to ________
A) 2,900; 3,100. B) 1,700; 1,760 C) 800; 950 D) 2,000; 2,040
If MPPa/Pa> MPPb/Pb, then the proportions of these two inputs is optimal.
Answer the following statement true (T) or false (F)
The qualifying income level for Medicaid
a. is $10,000 b. is $14,000 c. is set separately by each state d. is set yearly by the Bureau of the Census e. varies inversely with the number of children in the family