How does a manufacturer set his or her total output to maximize profit?
(A) Set production so that total revenue plus costs is greatest.
(B) Determine the largest gap between total revenue and total cost.
(C) Determine where marginal revenue and profit are the same.
(D) Set production at the point where marginal revenue is smallest.
Ans: (B) Determine the largest gap between total revenue and total cost.
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The elasticity of any demand curve is the same as its slope.
Answer the following statement true (T) or false (F)
Hiring Tech Support Collin County Community College (CCCC) has an ongoing problem that the electronic equipment in their classrooms and computer labs keeps malfunctioning and the repairs that are made seem to cause problems with some other aspect of the
equipment. Due to its bureaucratic structure, CCCC has a hiring preference for their own students and it is only allowed to pay $15 per hour when the going rate is closer to $18 per hour. How does this contribute to CCCC's equipment problems?
While demand shifts have an effect on equilibrium price and quantity, supply shifts have no such effect
a. True b. False Indicate whether the statement is true or false
Which of the following is a typical example of a firm in a constant-cost industry?
a. Even though Snappy, Inc. increases its demand for rubber, the market price for rubber is unaffected. b. When TRN, Inc increases its demand for aluminum, the market price for aluminum rises. c. After RV Sports exits a market, the market wage for unskilled labor drops. d. QuickEats, a fast-food chain, shuts down, causing the market price for beef to drop.