Exhibit 7-11 A firm's cost and marginal revenue curves
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In Exhibit 8-11, when the price rises from $5 to $8, the profit-maximizing (or loss-minimizing) firm goes from making a:
A. loss to making a smaller loss.
B. loss to making a larger loss.
C. loss to making a profit.
D. profit to making a loss.
Answer: C
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A) zero B) two C) four D) three E) none of the above
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What will be an ideal response?
The introduction of a union into an industry
a. raises wages and employment in that industry. b. lowers wages and employment in that industry. c. lowers wages and raises employment in that industry. d. raises wages and lowers employment in that industry.
When you are able to supply others with goods and services they value highly relative to your opportunity costs,
What will be an ideal response?