Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If MR = $5, then a profit-maximizing firm will produce ________ units and earn ________.
A. 12; positive profits
B. 10; negative profits
C. 0; negative profits
D. 5; zero profits
Answer: C
You might also like to view...
The average output produced per worker is one way of measuring
A) inflation. B) the interest rate. C) employment. D) productivity.
Compared to the natives of Northern America, ownership of private property rights was
(a) more common to the Europeans than it was to the natives (b) more common to the Indians than to the Europeans. (c) the same. (d) of no value to either group.
The marginal cost of pollution abatement is represented by
A) an upward sloping curve. B) a downward sloping curve. C) a horizontal curve. D) a vertical curve.
The country Autarka does not allow international trade. In Autarka, you can buy a wool suit for 3 ounces of gold. Meanwhile, in neighboring countries, you can buy the same suit for 2 ounces of gold. This suggests that
a. Autarka does not have a comparative advantage in producing suits and would become a suit importer if it opened up trade. b. Autarka has a comparative advantage in producing suits and would become a suit importer if it opened up trade. c. Autarka does not have a comparative advantage in producing suits and would become a suit exporter if it opened up trade. d. Autarka has a comparative advantage in producing suits and would become a suit exporter if it opened up trade.