Good Boy Super Treats produces healthy treats for dogs. At its current advertising level, Good Boy Super Treats marginal cost of advertising is $1 million and their marginal benefit is $1 million. Which of the following is true?
A) If the firm increases the amount of advertising, its net profit will increase.
B) The firm should increase the amount of advertising to increase its net profit.
C) The firm is currently maximizing its net profit.
D) If the firm decreases the amount of advertising, its net profit will increase.
C) The firm is currently maximizing its net profit.
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If a firm traded on the New York Stock Exchange posts an accounting profit of $10 million, then the firm is making a positive economic profit
A) only if the Securities and Exchange Commission (SEC) approves the accounting report. B) only if the firm's opportunity cost is less than $10 million. C) only if the firm's opportunity benefit is more than $10 million. D) only if the firm's management receives stock compensation.
The problem of scarcity: a. exists because resources are limited relative to wants
b. exists because resources are unlimited relative to wants. c. can be eliminated through appropriate government intervention into markets. d. does not exist in communist societies.
Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.
The profit-maximizing level of output for this monopolist is ________ units per day.
A. I B. H C. F D. G
Which of the following countries had the smallest share of exports as a percentage of GDP in 2011?
A. Canada B. France C. United Kingdom D. United States