Figure 10-2
?
Figure 10-2 shows demand and short-run cost curves for a perfectly competitive firm. At its profit-maximizing output, the firm’s total ____ is represented by area ____.
A. loss; GBHC
B. profit; ADGHC
C. loss; ADEC
D. profit; EGH
Answer: C
You might also like to view...
JoAnn considers cola and plain sparkling water to be good substitutes. Suppose the price of sugar, a key ingredient used to produce cola, falls. According to the income effect, which of the following is most likely to occur?
a. JoAnn will purchase less cola and more sparkling water. b. JoAnn will purchase more cola and less sparkling water. c. JoAnn will purchase more of most goods due to her higher real income. d. JoAnn's demand curve will decrease (shift in), causing her to purchase less cola.
Assume Brandon's benefit function for water is S(W) = ?W and he consumes water both in droughts, WD, or in the rainy season, WR. Assume his current consumption bundle is WD = 400 and WR = 100 and the probability of drought is 0.75. Brandon's certainty equivalent is:
A. 250 units of water. B. 306.25 units of water. C. 18.75 units of water. D. 17.5 units of water.
One cause of market failure may be the absence of clearly defined property rights
a. True b. False Indicate whether the statement is true or false
Which one of the following would not increase recycling rates?
a. Technological lock-in b. A tax on virgin resources c. Pay-by-the-bag garbage programs d. Government procurement of recycled materials e. Increased royalty payments for extraction of resources