A perfectly competitive firm maximizes its profit by producing the level of output so that its average total cost equals the market price
Indicate whether the statement is true or false
FALSE
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The new growth theory states that
A) it is impossible to replicate production activities. B) technological advances are the result of discoveries and choices. C) the subsistence level income leads to technological advances. D) technological advances are the responsibility of the government. E) technological advances are the result of random chance.
Benny, Denny, Jenny, Kenny, and Lenny are tap-dancing siblings who perform as the Tapiocas
Do to their individual dance styles, Benny and Denny each have a 50% chance of developing hammer toe, and Jenny, Kenny and Lenny each have a 20% chance of developing hammer toe. Each visit to the podiatrist costs $250. If each member of the Tapiocas were offered hammer toe insurance, how much would the premium be?
In general, a firm sends a signal to consumers that their product is high quality when
A. it spends very little in advertising campaigns. B. it has low level fixed costs. C. it has high level of fixed costs. D. it gives huge discounts to large sellers.
Historical data depicted on a scatter diagram show that consumer spending and disposable income
A. converge as income grows. B. generally move together. C. diverge as income grows. D. show no clear relationship.