A firm will maximize profit by producing that level of output at which
A. total revenue equals total cost.
B. the additional revenue from the last unit sold equals the additional cost of the last unit.
C. total revenue exceeds total cost by the largest amount.
D. the additional revenue from the last unit sold exceeds the additional cost of the last unit by the largest amount.
E. both b and c
Answer: E
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Poverty is defined in two ways: the absolute concept of poverty and the relative concept of poverty.
Answer the following statement true (T) or false (F)
Which of the following is false?
a. Once a country has a comparative advantage in producing a good, that comparative advantage will always continue. b. If you can mow the lawn at home faster than your younger brother, you have a comparative advantage over him in mowing the lawn. c. Restrictions on trade will reduce people's degree of specialization according to comparative advantage d. As practice at producing what you have a comparative advantage in makes you better at it, your comparative advantage would tend to increase.
Combining various goods and services into a convenient grouping is called
a. conglomeration. b. blending. c. congregation. d. agglomeration. e. aggregation.
Exhibit 3-3 Demand curves
Assume that crackers and soup are complementary goods. Which of the graphs in Exhibit 3-3 depicts the effect of a promotional discount that decreases the price of crackers on the demand for soup?
A. Graph A. B. Graph B. C. Graph C. D. Graph D.