The following figure shows the demand and cost curves facing a firm with market power in the short run.
The profit-maximizing level of output is
A. 60 units.
B. 70 units
C. 80 units
D. 90 units.
E. 100 units.
Answer: A
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If the U.S. government can run chronic budget deficits, why can't state governments do the same?
A) Conservatives have more power in state legislatures than in the U.S. Congress. B) Voters do not believe in budget deficits and they control state governments. C) Most states have no income tax. D) State constitutions require balanced budgets. E) States must rely on taxation for the funds to repay creditors.
Gross Domestic Product is a monetary measure of
a. total consumption in the economy. b. the total value of all final goods and services. c. total industrial output. d. the total value of all foreign sales and purchases.
An export subsidy helps reduce the selling price of a product by allowing individual producers to charge less and still cover all of their production costs
a. True b. False Indicate whether the statement is true or false
Situation 37-2 Dan and Ann live in the same community and both can participate in two activities, producing and stealing. Refer to Situation 37-2. If Dan's MB/MC ratio for producing is currently greater than his MB/MC ratio for stealing, then he will
A) steal more and produce less. B) steal less and produce less. C) produce more and steal more. D) produce more and steal less.