?A perfectly competitive firm that earns an economic profit in the short run choose the output that:
a. ?maximizes the difference between total revenue and implicit cost.
b. ?minimizes its total cost.
c. ?maximizes the difference between total revenue and total cost.
d. ?maximizes its total revenue.
e. ?maximizes the difference between total revenue and explicit cost.
Answer: c. ?maximizes the difference between total revenue and total cost.
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Suppose the Fed increases the money supply. As a result of this, people deposit excess funds into their bank accounts, causing banks to have excess reserves
As a result, the banks lower the interest rates that they charge on loans, and investment rises, causing an increase in aggregate spending. This is known as a(n) A) direct effect of monetary policy. B) indirect effect of monetary policy. C) direct effect of fiscal policy. D) indirect effect of fiscal policy.
Which of the following was a cause of the savings and loan crisis that occurred in the 1980s?
a. the increasing rates of inflation throughout the 1970s b. savings and loans investing in high-risk ventures including real estate projects c. government deregulation in the 1980s d. all of the above
Explain the difference between fixed costs in the short run and in the long run.
What will be an ideal response?
The biggest problem with the ________ was that it was unclear what specific acts were to be considered "restraints of trade."
A. Sherman Antitrust Act B. The Humphrey-Hawkins Act C. The Clayton Act D. The FTC Act