The firm maximizes economic profit by finding the rate of output at which total revenue ________ total cost ________
a. equals; all else constant
b. plus; equals
c. minus; equals zero
d. exceeds; by the greatest amount.
d
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A. land, labor and money. B. entrepreneurship and capital. C. capital and money. D. corporations and partnerships.
Which of the following statements about the 2000 average wages of blacks and Hispanics compared to whites is most accurate?
a. African Americans earn about the same was whites but Hispanics earn about 70% of what whites earn. b. African Americans earn about 70% of what whites earn, while Hispanics earn about 75% of what whites earn. c. Hispanics earn about the same was whites but African Americans earn about 70% of what whites earn. d. African Americans and Hispanics earn less than half of what whites earn.
Which of the following statements best describes an effect of tax cuts?
a. In a recession, when the intersection of the AD and AS curves is far below the full-employment level, tax cuts can do not make sense as a way of shifting AD to the left. b. In a recession, when the intersection of the AD and AS curves is far below the full-employment level, tax cuts do not make sense as a way of shifting AD to the right. c. In a recession, when the intersection of the AD and AS curves is far below the full-employment level, tax cuts can make sense as a way of shifting AD to the left. d. In a recession, when the intersection of the AD and AS curves is far below the full-employment level, tax cuts can make sense as a way of shifting AD to the right.
In the long-run equilibrium of a market with free entry and exit, if all firms have the same cost structure, then
a. marginal cost exceeds average total cost. b. the price of the good exceeds average total cost. c. average total cost exceeds the price of the good. d. firms are operating at their efficient scale.