A firm wishing to maximize profits will produce at the level of output where:
a. marginal cost is equal to zero.
b. its total cost curve intersects its total revenue curve.
c. its costs are at a minimum.
d. total revenue exceeds total cost by the largest amount.
e. marginal revenue exceeds marginal cost by the greatest amount.
d
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When the government imposes taxes on buyers or sellers of a good, society
a. loses some of the benefits of market efficiency. b. gains efficiency but loses equality. c. is better off because the government's tax revenues exceed the deadweight loss. d. moves from an elastic supply curve to an inelastic supply curve.
Refer to the graph shown. The line segment that represents average variable costs of producing Q* is:
A. CQ*. B. AB. C. AQ*. D. BQ*.
Which is included in GDP?
a. 100 shares of stock in the stock market b. Social Security payments c. A new computer d. Used furniture purchased by consumers
A Wall Street Journal headline reads: "Cigar Shortage Draws New Brands into Market." The shortage resulted from a renewed interest in smoking cigars. What best describes facts behind the headline?
A. Demand has shifted to the right and price has risen to equilibrate supply and demand. B. Supply has shifted to the left. Price has risen somewhat, but not enough to equilibrate supply and demand. C. Demand has shifted to the right. Price has risen somewhat, increasing quantity supplied, but not enough to equal quantity demanded. D. Supply has shifted to the right. Price has fallen somewhat, but not enough to equilibrate supply and demand.