Productive efficiency refers to:
A. Cost minimization, where P = minimum ATC
B. Production at a level where P = MC
C. Maximizing profits by producing where MR = MC
D. Setting TR = TC
A. Cost minimization, where P = minimum ATC
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Suppose a family-owned yogurt shop has $80,000 in total revenues, $36,000 in rent, and $20,000 in additional operating costs. The husband and wife work in the shop and pay no wages to themselves or others. The economic profits from the shop are
A) $24,000. B) less than $24,000. C) more than $24,000. D) $80,000.
In contrast to the typical Republican Party laissez-faire policies, President Richard Nixon in 1971 introduced
a. mandatory drug testing of cabinet officers. b. monetary targets for the Federal Reserve Board. c. wage and price controls. d. mandatory gold purchases by the U.S. Treasury.
Suppose a monopolist's costs and revenues are as follows: ATC = $45.00; MC = $40.00; MR = $40.00; P = $45.00. The firm should
A. decrease output and increase price. B. increase output and decrease price. C. not change output or price. D. shut down.
A British importer buying American wheat would pay for his purchases in __________.
Fill in the blank(s) with the appropriate word(s).