Exhibit 7-12 Marginal revenue and cost per unit curves
?
As shown in Exhibit 7-12, the price that will yield zero economic profit is:
A. OA.
B. OB.
C. OC.
D. OD.
Answer: B
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Exhibit 10-1A perfectly competitive producer has the following short-run average cost curve and marginal cost curve:SR AC = 2Q + 3MC = 4Q + 3where costs are measured in dollars and Q represents the firm's output in units. If the market price of wangdoodles is $15 each, the profit-maximizing producer whose short-run cost curves are given in Exhibi should produce ____ wangdoodles.
A. 0 B. 3 C. 6 D. 15
A recessionary gap is the amount by which aggregate expenditures ____ the amount required to achieve full-employment equilibrium GDP
a. exceed b. equal c. fall short of d. are greater than
The interest rate is the opportunity cost of transferring spending power between time periods. However, the market mechanism may fail to provide adequately for future economic growth. List the reasons why a market might fail.
What will be an ideal response?
Each of the following is a variable cost except
A. raw material costs. B. hourly wages. C. rent. D. advertising costs.