Economists generally assume that the firm's goal is to
a. minimize its costs.
b. maximize its profit.
c. make its market share as large as possible.
d. maximize its production.
b. maximize its profit.
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Most movie theatres charge different prices to different groups of customers for movie admission but not on movie popcorn. Which of the following is a reason for this?
A) because the markup on movie popcorn is very high and movie theatres do not want to forgo this source of revenue B) because it is easier to limit resale in movie admissions but not in popcorn C) because the cost of operating a concession stand in a movie theatre is very high compared to the cost of showing a movie D) because the demand for popcorn is very high relative to the demand for movie admissions
Oligopoly describes a market with:
A. many sellers. B. only a few sellers. C. few or many sellers, but only one buyer. D. one seller.
This table shows the different combinations of goods that Jack can consume, given that his income to spend on these two items is $10.BundleNumber of popsiclesUtility from popsiclesNumber of ice cream conesUtility from ice cream conesA1070000B87201500C66502700D45503750E24004760F005760Considering the information in the table shown, if Jack consumes 2 popsicles and 2 ice cream cones:
A. Jack still has $2 left to spend. B. Jack still has $6 left to spend. C. Jack still has $4 left to spend. D. Jack still has $8 left to spend.
If the Consumer Price Index was 125 in one year and 120 in the following year, then the rate of inflation is approximately:
A. 4.0 percent B. 4.2 percent C. -4.0 percent D. -4.2 percent