A firm earns a profit if

A. price equals marginal cost.
B. total revenue exceeds the total cost of production.
C. price is less than the total cost of production.
D. total revenue equals total fixed costs.


Answer: B

Economics

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In the long run, the most helpful action that a monopolistically competitive firm can take to maintain its economic profit is to

A) continue its efforts to differentiate its product. B) raise its price. C) lower its price. D) do nothing, because it will inevitably experience a decline in profits.

Economics

It is important to distinguish between the privately held portion of the national debt and the portion held by government agencies and the Federal Reserve System because:

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Economics

For a long while, electricity producers were thought to be a classic example of a natural monopoly. People held this view because

a. the average cost of producing units of electricity by one producer in a specific region was lower than if the same quantity were produced by two or more producers in the same region. b. the average cost of producing units of electricity by one producer in a specific region was higher than if the same quantity were produced by two or more produced in the same region. c. the marginal cost of producing units of electricity by one producer in a specific region was higher than if the same quantity were produced by two or more producers in the same region. d. electricity is a special non-excludable good that could never be sold in a competitive market.

Economics