The short-run break-even price is the point at which
A) price is less than marginal cost.
B) marginal cost, average total cost and marginal revenue are all equal.
C) average variable cost is at a minimum.
D) marginal cost, price and average variable cost are all equal.
B
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Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. Adding a seventh employee adds:
A. 255 hats to total production.
B. 25 hats to total production.
C. 20 hats to total production.
D. 275 hats to total production.
In a simple, private economy, suppose that the MPC is .8 and investment rises by $20 million. At the new equilibrium, how much will saving have increased?
a. $8 million b. $16 million c. $20 million d. $80 million e. $100 million
Dee is an accomplished actress and a homeowner who pays a landscaper to maintain her lawn rather than do it herself. Dee has determined that she can earn more in the hour it would take her to work on her lawn than she must pay her landscaper. This scenario is an example of which principle of economics?
a. Trade can make everyone better off. b. Markets are usually a good way to organize economic activity. c. Governments can sometimes improve market outcomes. d. Prices rise when the government prints too much money.
Refer to the graph shown.
If suppliers can reduce output from M to L, the remaining firms in the market that are still producing L will find that their revenues will rise by:
A. area A, B, and C. B. area B. C. area A, B, and D. D. area A.