The optimization rule for unconstrained optimization is to select that level of activity at which
A. total benefit is less than total cost.
B. marginal benefit equals marginal cost.
C. marginal benefit exceeds marginal cost.
D. total benefit is equal to total cost.
Answer: B
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A positive nominal interest rate indicates
a. how fast the number of dollars in your savings account is rising over time. b. how fast the purchasing power of your savings account is rising over time. c. the number of dollars in your savings account today. d. the purchasing power in your savings account today.
Identify the advantage of the corporation over sole proprietorship and partnership?
a. Small stockholders in a corporation have the ability to influence corporate policy because corporations are governed on the "one person, one vote" principle. b. Corporate income usually receives tax exemptions from the government. c. Corporations that violate environmental or workplace safety law cannot be punished. d. Corporation can survive even if ownership changes hands.
Which of the above diagrams illustrate(s) the effect of a decline in the price of irrigation equipment on the market for corn?
A. B and C B. D only C. C only D. B only
Price is the coordinating mechanism in a planned economy.
Answer the following statement true (T) or false (F)