In economics we assume that the goal of a firm is to
A) minimize costs.
B) maximize revenue.
C) maximize economic profits.
D) maximize total sales.
C
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What rule(s) should a firm follow in deciding optimum output for profit maximization?
In Figure 31.2, what is the difference between the marginal revenue product of the last worker hired by the monopsonist and the wages the monopsonist pays the last worker?
A. $5 per hour. B. $3 per hour. C. $4 per hour. D. $2 per hour.
If the marginal costs are constant and zero for a single price monopolist facing the demand curve P = 10 - Q, what will profits be if fixed costs are 12? 
A. 12 B. 10 C. 38 D. 13
During the mid-1980s, we observed a significant reduction in oil prices. In the United States, we would expect that this reduction in oil prices would cause
A) a larger reduction in the CPI compared to the GDP deflator. B) an equal reduction in the CPI and GDP deflator. C) a larger reduction in the GDP deflator compared to the CPI. D) no change in the CPI and a reduction in the GDP deflator.