Refer to the above table. This firm operates in a perfectly competitive market in which the market price is $5/unit. What is TRUE when the firm produces 110 units?
A. Its total profit is $65.
B. Total revenue equals $3,075.
C. Marginal revenue is more than marginal cost.
D. Total costs exceed total revenue by $65.
Answer: D
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According to the above figure, if the firm is earning zero economic profits, what quantity is the firm selling and at what price?
A) Q = 200; P = $4 B) Q = 1,000; P = $5 C) Q = 800; P = $4 D) Q = 1,200; P = $7
The money supply known as M3
a. does not include credit union accounts b. excludes certificates of deposit c. includes M2 + large denomination time deposits and repurchase agreements d. excludes travelers' checks e. does not include demand deposits
Plant and equipment that is “used up” in producing current output is
A. marginal product. B. depreciation. C. deficit product. D. marginal rate of usage.
Suppose Jason owns a small pastry shop. Jason wants to maximize his profit, and thinking back to the microeconomics class he took in college, he decides he needs to produce a quantity of pastries which will minimize his average total cost. Will Jason's
strategy necessarily maximize profits for his pastry shop? A) Yes; Since Jason's pastry shop is in a perfectly competitive market, the only way to maximize profit is to produce the quantity where average total cost is minimized. B) Not necessarily; This strategy will only maximize Jason's profit in the long run, but not in the short run. C) No; In order to maximize profit, Jason would never want to produce the quantity where average total cost is minimized. D) Not necessarily; Depending on demand, Jason may maximize profit by producing a quantity other than that where average total cost is at a minimum.