The table above provides cost data for a perfectly competitive firm producing toy cars. The firm is producing non-divisible goods. If the market price is $70 and the firm is a profit maximizer, the firm can earn a maximum economic profit of ________
A) a loss of $500
B) a loss of $10
C) a loss of $510
D) $210
A
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Classical economists believe that the economy tends naturally toward
a. full employment and zero inflation equilibrium without government interference b. zero unemployment and zero inflation as long as the Federal Reserve keeps interest rates low c. high unemployment unless the Federal Reserve constantly adjusts the money supply d. high inflation unless the government curbs its spending habits and cuts tax rates to spur economic activity e. monetary equilibrium as long as money velocity is less than one
Which of the following best characterizes the tradeoff faced by a monopolist when deciding what quantity to produce?
A. The firm can increase its output, but needs to lower its price for only the marginal unit of output. B. The firm can increase its output, but to do so it must charge a higher price to all customers. C. The firm gets more revenue from new customers by increasing output, but gets less revenue from existing customers given that it lowered its price. D. The firm gets less revenue from new customers by increasing output, but gets more revenue from existing customers given that it lowered its price.
The decline in new business startups
A) is not concentrated in one industry. B) is concentrated primarily in high-tech industries. C) is concentrated primarily in health care industries. D) is concentrated primarily in public service industries.
Marginal cost is ________ average variable cost when ________.
A. equal to; average total cost is minimized B. less than; total cost is maximized C. equal to; average variable cost is minimized. D. greater than; average fixed cost is minimized