The figure above shows a perfectly competitive firm. If the market price is $20 per unit, then the firm produces ________ units and makes an economic profit that is ________
A) more than 30; more than $100
B) 30; more than $100
C) 20; less than $400
D) 0; zero
E) 30; zero
E
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Stocks and bonds issued in banking-oriented systems are rather __________ because they are traded __________
A) liquid; frequently B) liquid; infrequently if at all C) illiquid; frequently D) illiquid; infrequently if at all
Environmental damage
A. can easily be reduced to zero. B. is inevitable where humans exist. C. tends to increase as long as costs outweigh the benefits to the damagers. D. is only a modern-day concern.
Suppose that when a firm produces the level of output at which price equals marginal cost, the firm's total revenue is less than its variable cost. In this case, the firm should:
A. purchase more fixed factors of production. B. shut down. C. produce more so that its total revenue increases. D. not change its level of output even if it's earning an economic loss in the short run.
You are the County Commissioner of Hazard County. Local business leaders are thrilled that Ms. Daisy has planted a panorama of flowers around her store front designed to look like cute kittens. Tourists have been coming from neighboring towns to see the? flowers, and this tourism has been increasing business activity for many businesses. The local business leaders would like you to convince Ms. Daisy to plant more flowers so that tourism continues to increase.
Refer to the scenario above. The business generated for other stores by Ms. Daisy's flower display is an example of a: