A competitive price-searcher firm is currently producing 10 units of output. At this level of output the firm is charging a price equal to $10, has marginal revenue equal to $6, has marginal cost equal to $6, and has average total cost equal to $12 . From this information we can conclude that
a. the firm is currently maximizing its profit.
b. the profits of the firm are positive.
c. firms are likely to enter this market in the long run.
d. the firm would earn more profit by expanding output
A
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Which of the following situations will arise in the domestic market following the imposition of an import quota?
A) imports decrease, domestic production decreases, prices increase B) imports increase, domestic production decreases, prices decrease C) imports decrease, domestic production increases, prices increase D) imports decrease, domestic production increases, prices decrease
Luxury goods are
a. price inelastic b. income inelastic c. income elastic d. goods with negative income elasticity e. goods with positive price elasticity
Because of their effect on interest rates,
A. capital flows weaken monetary policy but strengthen fiscal policy. B. capital flows strengthen monetary policy but weaken fiscal policy. C. the initial effects of a fiscal expansion on aggregate demand are strengthened. D. the initial effects of a monetary contraction are weakened.
Answer the following statement(s) true (T) or false (F)
1. The federal grant program may have created an incentive for over-building of POTWs and a disincentive for cost-minimization. 2. The Nonpoint Source Management Program was enacted under the Water Quality Act of 1987 as a three-stage plan to be implemented at the state level. 3. According to the text application, mercury contamination is relatively easy to control because mercury emissions tend to remain close to the polluting source. 4. In the United States, the greatest proportion of resources and funding has been allocated to nonpoint source pollution. 5. Delegating control of nonpoint source pollution to the states can be advantageous because runoff is affected by factors that vary considerably, making uniform controls at the federal level ineffective and difficult to implement.