Mike, of Mike's Machines has hired a consultant who informs Mike that since the total revenue from current operations exceeds total cost, he should consider increasing production of machines. Mike would be best off if he
a. increases production of machines until total revenue is equal to total cost.
b. increases production until net gains are equal to zero.
c. maintains his current level of production so long as marginal revenue is equal to marginal cost.
d. decreases his current level of production if marginal revenue is equal to marginal cost.
c. maintains his current level of production so long as marginal revenue is equal to marginal cost.
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The world price of a good is determined by the
A. worldwide demand and supply of that good. B. demand for that good in the world market. C. supply of that good in the world market. D. country that produces the good.
Miguel receives a pay raise at his part-time job from $7.50 to $9 per hour. He used to work 10 hours per week, but now he decides to work 12 hours per week. For this price range, his labor supply curve is
a. vertical. b. horizontal. c. upward sloping. d. backward sloping.
The total monetary returns associated with stock ownership result from dividends and capital gains.
Answer the following statement true (T) or false (F)
Second hand cigarette smoke is an example of a(n)
A. economy of scale. B. public good. C. government failure. D. externality.