Exhibit 8-12 Marginal revenue and cost per unit curves
As shown in Exhibit 8-12, if the firm's price is OD, the firm will supply
A. zero units of output because it is unprofitable.
B. X units and incur a loss.
C. Y units and break even.
D. Z units and make an economic profit.
Answer: D
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The above table gives the government outlays and tax revenues from 2008 through 2012 for two countries. In 2011 country A had a ________ and country B had a ________
A) budget deficit; budget deficit B) balanced budget; budget surplus C) balanced budget; budget deficit D) budget surplus; budget surplus E) budget surplus; balanced budget
The percentage change in the quantity demanded of a good due to a percentage change in its price is referred to as the:
A) price multiplier. B) price elasticity of demand. C) shadow price of the good. D) consumer surplus.
Which of the following guarantees the deposits in almost all banks up to a $250,000 limit per account?
a. the Federal Reserve b. the FDIC c. the U.S. Treasury d. Bank of America Corporation
For a perfectly competitive market in which firms face an identical constant marginal costs, the amount of consumer surplus increases if
A) market demand decreases. B) market demand increases. C) marginal cost increases. D) none of the above: insufficient information to answer.