Excess capacity exists when a firm produces
A) more than the profit-maximizing level of output.
B) less than the quantity that minimizes average total cost.
C) less than the quantity that minimizes marginal cost.
D) more than the quantity that minimizes marginal cost.
E) None of the above answers is correct.
B
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The figure above shows the U.S. demand and U.S. supply curves for cherries. In the absence of international trade, how many pounds of cherries would U.S. farmers produce?
A) 200,000 pounds B) 400,000 pounds C) 600,000 pounds D) 800,000 pounds E) 0 pounds
The above figure shows the marginal benefits and marginal costs of a college education. If no subsidies are paid, colleges charge tuition of
A) $0. B) $5,000. C) $10,000. D) $15,000.
In the banking system of the United States, banks that wish to borrow to make up reserve deficiencies must turn to the federal funds market
a. True b. False Indicate whether the statement is true or false
Suppose that Tim is willing to pay $50 for a dozen of roses for Kim on Valentine's Day. If he actually pays $2.50 per rose for the 12 roses, his total consumer surplus is:
A. $50. B. $30. C. $20. D. $12.