A purely competitive firm is producing at the point where its marginal cost equals the price of its product. If the firm increases its output, then total revenue will:
A. Increase and profits will increase
B. Decrease and profits will increase
C. Increase and profits will decrease
D. Decrease and profits will decrease
C. Increase and profits will decrease
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Ashton has the utility of wealth curve shown in the above figure. He owns a sports car worth $30,000, and that is his only wealth. Ashton is a careless driver and there is a 30 percent chance that he will have an accident within a year
If he does have an accident, his car is worthless. What is Ashton's expected utility? A) 100 B) 30 C) 70 D) zero
Explain how the German Bundesbank gained its low-inflation reputation
What will be an ideal response?
In a one-person Robinson Crusoe economy, labor specialization
a. can shift the production possibilities curve to the right b. is already present because Crusoe produces everything himself c. can decrease production of all types of goods d. cannot increase production e. is impossible
The statement that "coal miners are paid more than workers with similar levels of education" is likely to reflect the fact that
a. coal mining is a declining industry. b. coal mining jobs are potentially more dangerous than jobs with comparable education requirements. c. all coal mines use nonunion labor. d. coal imports are rising.