Under perfect competition, firms produce the ________ level of output because price equals marginal cost.
A. most costly
B. greatest
C. equitable
D. efficient
Answer: D
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Any point on the lowest indifference curve is preferable to a point on a higher indifference curve.
Answer the following statement true (T) or false (F)
According to Gary Libecap and Ronald Johnson, which of the following was a positive outcome of fraudulently obtaining land by larger firms?
a. Fines charged to fraudulent companies provided substantial revenues for the federal government. b. Resources were transferred to companies that could take advantage of economies of scale. c. Conflicts between farmers and railroads were reduced. d. Legislators friendly to economic development were elected because of backing from the fraudulent companies.
A monopolist that maximizes total revenue earns maximum economic profit
a. True b. False Indicate whether the statement is true or false
Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for $20 each. An economist would calculate the total cost for one birdhouse to be
a. $5. b. $8. c. $9. d. $13.