In the figure above, when production is 3 units with a price of $3, the producer surplus in this market equals
A) b + g.
B) f + g.
C) a + b + f + g.
D) a + b + f + g + h + i.
B
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In perfect competition, an individual firm
A) faces unitary elasticity of demand. B) has a price elasticity of supply equal to one. C) faces a perfectly elastic demand. D) has perfectly elastic supply.
Suppose you buy 100 shares of 3M at $86 a share and sell all shares one year later for $99 a share. During the year, you earned a dividend of $2.10 a share. What was your rate of return? Report your answer in percentages with one decimal point
What will be an ideal response?
Bartech, Inc. is a firm operating in a competitive market. The manager of Bartech forecasts product price to be $28 in 2015. Bartech's average variable cost function is estimated to beAVC = 10 ? 0.003Q + 0.0000005Q2Bartech expects to face fixed costs of $12,000 in 2015. The profit-maximizing (or loss-minimizing) output for Bartech is
A. 2,000 units B. 6,000 units C. 0 units D. 1,000 units E. 500 units
When the economy is producing ________, the aggregate supply curve becomes vertical.
A. beyond full capacity B. at negative capacity C. at full capacity D. below full capacity