Use the above figure. The economic profit for this firm is
A) zero.
B) the distance between T and E.
C) the distance between E and x-axis.
D) the distance between T and x-axis.
A
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Assume that the supply curve is horizontal because marginal cost is constant at $10. If John, Robert, and Jimmy each value one compact disc at $20 but only Jimmy values a second compact disc, then the total value in this market is $35 if
a. Jimmy’s value for a second compact disc is $0. b. Jimmy’s value for a second compact disc is $5. c. Jimmy’s value for a second compact disc is $10. d. Jimmy’s value for a second compact disc is $35.
A freeze in Florida's orange growing regions will:
A result in a sharp increase in the price of oranges in the short run because demand and supply are highly elastic. B result in a sharp increase in the price of oranges in the short run because demand and supply are highly inelastic. C result in little change in the price of oranges in the short run because supply is infinitely elastic. D result in a sharp decrease in the price of oranges in the short run because demand is highly inelastic and supply is highly elastic.
Answer the next question on the basis of the following data.OutputTotal Cost0$24133241348454561669The marginal cost associated with the production of the third unit of output is
A. $7. B. $12. C. $8. D. $6.
Refer to the diagram, in which Q f is the full-employment output. A contractionary fiscal policy would be most appropriate if the economy's present aggregate demand curve were at:
A. AD 0 .
B. AD 1 .
C. AD 2 .
D. AD 3 .