In order to maximize profit, a firm that produces its output in two plants will allocate total output between the two plants so that
A. marginal cost for the firm is equal to the sum of the plants' marginal revenue.
B. marginal cost is equal for the two plants.
C. marginal revenue is equal for the two plants.
D. both a and b
E. all of the above
Answer: B
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The most common form of trading goods for goods is
a. bilateral trade. b. government commodity distribution. c. status-based trades. d. barter. e. payments in kind.
Government regulation is
a. subject to the same problems of lack of information and lack of incentives for economic efficiency as centrally planned economies. b. the only reliable way to improve environmental quality. c. not subject to political concerns when it comes to environmental quality. d. the most economically efficient way to reduce greenhouse gases.
(Table: Consumer Price Index) Refer to the CPI values in the table for the years 2005 to 2010. In which year(s) did the country experience disinflation?
What will be an ideal response?
Today, the share of international trade in U.S. GDP is
A. about 30 percent. B. almost 0 percent. C. more than 150 percent. D. about 16 percent.