Which of the following is an act of economic "investment"?
A. A brewer purchases a new fermentation system for his beer.
B. An entrepreneur buys 5,000 shares of stock at $5 a share and then sells the stock at a profit for $60 a share.
C. A teacher deposits $500 in a retirement account.
D. The state legislature authorizes the sale of a state park.
Answer: A
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The marginal revenue curve of a competitive firm is
a. U-shaped. b. a ray from the origin. c. a horizontal line at the market price. d. downward sloping.
Use the following graph to answer the question below.
If the price is P3, then the total revenue is represented by area
A. E + F + G. B. B + C + D + E + F + G. C. B + C + D. D. A + B + C + D + E + F + G.
Trade results from
A) comparative advantage. B) diminishing returns. C) self-sufficiency. D) absolute advantage.
Compared to the profit-maximizing outcome, average cost pricing in natural monopoly leads to
a. all of the following b. a higher price c. decreased consumer surplus d. the elimination of economic profit e. less output