Every profit-maximizing producer is cost minimizing.
Answer the following statement true (T) or false (F)
True
Rationale: To maximize profit, it is necessary to produce the output that is produced at the lowest possible cost.
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In 1940, civilian purchases of goods and services equaled roughly _____ of GDP; by 1943, it had changed to roughly ________ of GDP
a. 97 percent; 57 percent b. 50 percent; 50 percent c. 25 percent; 75 percent d. 50 percent; 10 percent
For a certain firm, the 100th unit of output that the firm produces has marginal revenue equal to $10 and a marginal cost of $7 . It follows that
a. the production of the 100th unit of output increases the firm's profit by $3. b. the production of the 100th unit of output increases the firm's average total cost by $7. c. the firm's profit-maximizing level of output is less than 100 units. d. the production of the 110th unit of output must increase the firm's profit by less than $3.
A common criticism of central banks in developing nations led by despotic dictatorships is that they lack
A. independence of political influence. B. corruption. C. an understanding of economics. D. control by political parties.
The demand curve for a monopolist differs from the demand curve faced by a competitive firm because the demand curve for:
A. a monopolist is the market demand curve. B. a monopolist lies below its marginal revenue curve. C. a competitive firm lies above its marginal revenue curve. D. a competitive firm is inelastic.