When households and businesses interact in product markets goods and services are
a. not exchanged
b. flowing toward businesses
c. flowing toward households
d. not used at all
e. flowing to both businesses and households
C
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Refer to the table below. What is the profit-maximizing quantity for Just Juice to produce at Plant 1?
Just Juice produces whole fruit juice that it sells in single bottles. Just Juice is a multi-plant firm with market power. The above table summarizes the total marginal cost of production at various output levels in Just Juice's two plants with the corresponding marginal revenue (dollars per bottle) and market demand (price per bottle).
A) 350
B) 530
C) 500
D) 425
In the short run, a firm that is a price taker will stay in business as long as
a. price equals average revenue. b. marginal revenue is greater than or equal to marginal cost. c. price exceeds average variable cost. d. price is less than average variable cost.
Complete crowding out implies that as government increases purchases by $1,
A) private spending decreases by $1. B) Real GDP remains unchanged. C) there is an equal offsetting decrease in one or more of the components of private expenditures. D) all of the above E) none of the above
Monopolies that exist because economies of scale create a barrier to entry are called natural monopolies.
Answer the following statement true (T) or false (F)