If a firm is maximizing profit, it produces at the point where
a. MR>MC b. MR = MC c. TR>TC d. TR = TC
b. MR = MC
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People who "sell short" are selling goods
A) at below-market prices. B) of poor quality. C) to purchasers who cannot afford to pay for them. D) they do not yet own. E) with the expectation of buying them back again.
One reason that economists encourage free trade is that
A) it encourages a more rapid spread of technology. B) it allows us to exploit the workers of less developed countries. C) we can sell more goods. D) it increases our capital stock.
Total revenue is equal to quantity multiplied by average revenue
a. True b. False Indicate whether the statement is true or false
Suppose Sarah Lee Corporation stock has a P/E ratio of 8 . This P/E ratio is relatively
a. low, indicating that buyers may expect earnings to rise. b. low, indicating that buyers may expect earnings to fall. c. high, indicating that buyers may expect earnings to rise. d. high, indicating that buyers may expect earnings to fall.