The optimal mix of output is always the same as the
A. Output that producers produce.
B. Output that the government provides.
C. Output that consumers demand.
D. Most desired combination on a production possibilities curve.
Answer: D
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Firms that are price takers
a. are small relative to the total market. b. produce products that are different than their competitors. c. can sell only a portion of their output at the market price. d. have downward-sloping demand curves.
Which is not true of price discrimination?
A. Successful price discrimination requires that different segments of the market have different demand elasticities B. Successful price discrimination will provide the firm with more profit than if it does not discriminate C. Successful price discrimination implies that the producer can separate customers into easily identifiable groups D. Successful price discrimination will generally result in a lower level of output than would be the case under a single-price monopoly
Which of the following statements is true for both Microsoft and a locally owned restaurant?
A. Both confront perfectly elastic demand for their products. B. Both are perfect competitors. C. Both seek to maximize profits. D. Neither firm is able to influence the price of their products.
When calculating the compensation of employees part of GDP
A) Social Security contributions must be included. B) fringe benefits are not included. C) taxes withheld on earnings are not included. D) the value of vacation time must be included.