Claude's Copper Clappers sells clappers for $60 each in a perfectly competitive market. At its present rate of output, Claude's marginal cost is $65, average variable cost is $25, and average total cost is $62 . To improve his profit/loss situation, Claude should
a. increase output
b. reduce output but not to zero
c. maintain the present rate of output
d. shut down
e. raise the price
B
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If the marginal revenue of a producer exceeds his marginal cost:
A) profit is maximized. B) profit is minimized. C) additional production enhances profits. D) additional production reduces profits.
Refer to Figure 7-3. What is the reduction in value of consumer surplus after the imposition of the quota?
A) $8 million B) $26.25 million C) $27.75 million D) $30 million
Recall the Application about finding estimates of elasticities of demand to answer the following question(s).According to the Application, ________ has a website that provides estimates of demand elasticities for hundreds of food products for dozens of countries.
A. the U.S. Department of Agriculture B. the U.S. State Department C. the United Nations D. the World Bank
The difference between "saving" and "savings" is that
A) saving is done by households and savings by businesses. B) saving is undertaken as a precaution against unemployment and savings are undertaken to increase investment spending. C) savings are the result of past and current saving. D) saving is placed in financial institutions such as banks, while savings are kept at home by people.