The graph above shows cost curves for a perfectly competitive firm. If market price is $3, how much profit will the firm earn?
A. -$400
B. $200
C. $400
D. -$200
Answer: A
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Which of the following is TRUE?
A) APC - APS = 1 B) MPC + MPS = 1 C) 1 + APC = APS D) APC + MPS = 1
One argument advanced in favor of not increasing the income tax on individuals with high income is that
A) increasing income tax increases wealth which contributes to increases in GDP. B) increasing the income tax on these individuals will reduce economic efficiency. C) not increasing income taxes will discourage corporations from increasing investment. D) increasing the income tax affects mostly middle-income and low-income individuals who are already paying heavy income taxes.
Which of the following is false? a. Market prices signal the relative availability of products to buyers
b. Market prices signal the relative value consumers place on products to sellers. c. The information and incentives offered by market price adjustments provide the "invisible hand" toward socially desirable cooperation between consumers and producers. d. None of the above are false; all are true.
The following is a hypothetical short?run production function: Hours of Total Marginal Labor Output Product 0 ___ ___ 1 100 100 2 ___ 80 3 240 ___ Refer to Scenario 1. What is the total output when 2 hours of labor are employed?
A. 180 B. 170 C. 150 D. 140