Quickie Inc, a perfectly competitive firm, currently maximizes profit by producing 400 units of output. If its marginal cost is equal to $25 and its average total cost is $20, then how much is it earning in economic profit?
a. Economic profit is always equal to zero in perfect competition.
b. $10,000
c. $8,000
d. $2,000
e. $4,000
d
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Ted moves into his first apartment. He buys a barely used washer/dryer set from Craigslist and hires a company to pick it up and deliver it to his apartment. What about this transaction will be counted in GDP?
A. The value of the washer/dryer set B. The value of the delivery service C. The value of the washer/dryer set and the delivery service D. Nothing about this transaction will count toward GDP
The primary manner in which the FTC settles an antitrust complaint is through
a. criminal trials b. cease-and-desist orders c. immunity from prosecution d. civil trials e. jail terms
In which of the following regions would you most expect to see labor-intensive production?
a. Japan b. Western Europe c. southeast Asia d. the United States
When most shocks originate in the monetary sector, it is generally better to have
A) a flexible rate system. B) a fixed rate system. C) a gold standard. D) a managed float.