Profits will be maximized when the slope of the total revenue curve and the slope of the total cost curve equal zero.
Answer the following statement true (T) or false (F)
False
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A bond is selling for $1000 and it pays $150 in interest a year. If the interest rate changes to 20 percent, then
A) the price of the bond falls to $750. B) the interest payment falls to $75. C) the interest payment rises to $200. D) the price of the bond rises to $1500.
What is the marginal revenue of producing the fourth unit?
a. 90 b. 40 c. 20 d. 180
What happens to the MP of labor when the market price of the good produced increases?
a. Increases proportional to price. b. Decreases proportional to price. c. Stays the same. d. Falls because quantity demanded falls.
In 18th century Europe, governments gave guilds legal authority to limit production of goods. This authority obstructed the market mechanism because the guild's actions prevented the forces of ________ from coordinating the self-interested decisions of
producers and consumers. A) absolute advantage B) demand and supply C) opportunity cost D) nature