A firm in a perfectly competitive industry produces its profit-maximizing quantity, 40 units. Industry price is $3, total fixed costs are $45, and total variable costs are $60. The firm's economic profit is
A. $15.
B. $30.
C. $35.
D. $60.
Answer: A
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The type(s) of merger(s) that directly increase(s) concentration in an industry is (are)
a. horizontal b. vertical c. conglomerate d. both vertical and horizontal e. both vertical and conglomerate
The natural rate of unemployment does not include
a. frictional unemployment b. technological unemployment c. workers who are unemployed because of a recession d. people laid off because the demand for their good disappeared, such as blacksmiths e. people who voluntarily quit their jobs to look for other, more promising jobs
Reserves that banks are required by law to keep on hand to back up their deposits are called
a. required reserves. b. borrowed reserves. c. actual reserves. d. excess reserves.
Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown in the accompanying figure.
According to Moe's PPC, moving from a 70 to an 80 in economics:
A. has a lower opportunity cost than moving from an 80 to a 90. B. is unattainable. C. has a higher opportunity cost than moving from an 80 to a 90. D. is inefficient.