Consider a short-run equilibrium in a perfectly competitive market. Suppose that the firms' average total cost and marginal cost schedules differ. In the short run,
A) all firms in the market must be able to make an economic profit.
B) all firms produce equal amounts of output.
C) some firms might incur an economic loss, but still produce output.
D) some firms might make an economic profit and, as a result, shut down.
E) all firms in the market must be able to make either positive or zero economic profit.
C
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The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs of bubble gum per hour. Joanne's money wage rate is $12 per hour. If a packet of bubble gum sells for $1.00, then Joanne ________ because ________
A) should recommend that the Bubby Gum company should decrease the price of the bubble gum ; it would sell more and bring a larger profit B) is creating a $2.00 per hour profit for the firm; her real wage rate is more than her output per hour C) is creating a $2.00 per hour loss for the firm; her real wage rate is more than her output per hour D) should ask for a raise in pay; then her real wage would be less than her output per hour E) is the last person the Bubby Gump company will employ; an additional hire would produce equal the amount of additional labor to real wage per hour
Refer to Table 18-3. Given the following exchange rates in the above table, what are the exchange rates stated as U.S. dollars per Danish krone and U.S. dollars per EU euro respectively?
A) 0.02 dollars per krone and 0.70 dollars per euro B) 0.05 dollars per krone and 1.30 dollars per euro C) 2.00 dollars per krone and 7.14 dollars per euro D) 0.20 dollars per krone and 1.43 dollars per euro
The high pay of professional basketball players
a. is earned despite the recent drop-off in popularity of pro basketball b. reflects the increased supply of skilled basketball players c. is not justified by the quantity of their play d. is due to the decline in quality of college basketball players e. reflects the limited supply of basketball talent and the growing demand for that talent
Which of the following is not a basic decision that all nations must confront?
A. How should we produce goods and services? B. Should we have economic growth? C. For whom should goods and services be produced? D. What goods and services should we produce?