Refer to the graph shown. A firm can produce the same amount of output at points:
A. B and C.
B. E and C.
C. A and C.
D. A and B.
Answer: C
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The sum of the value added at every stage of production is equal to the
a. final selling price of a product b. value of all the intermediate transactions in the production process c. value of national income in the economy d. value of net domestic product in the economy e. value of all the inventories in the economy
What is true for monopoly that is not true for perfect competition?
a. The industry demand curve is downward sloping. b. Profit is maximized where MR = MC. c. The firm and the industry are exactly the same entity. d. Positive economic profits may be earned in the short run.
When studying individuals' economic behavior, economists assume that
A) individuals understand the rationale for all their actions. B) individuals act as if they were rational. C) only educated people act as if they were rational. D) self-interest is of limited relevance in predicting an individual's actions.
The supply curve is influenced by
A) the income of consumers. B) the number of customers in the market. C) the prices of the inputs required to produce the product. D) the expectations of future profit.