The loss-minimizing output for the perfectly competitive firm occurs at the point at which
A. TC - ATC = maximum.
B. TR - MR = minimum.
C. TR - TC = maximum.
D. MR = MC.
Answer: D
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Two university graduates, Bill and Steve, worked for an advertising agency at an annual salary of $40,000 each for 3 years after they graduated. Then, they decided to quit their jobs and start a partnership that designs and builds Web sites
They rented an office for $12,000 a year and bought capital for $30,000. To pay for the equipment, Bill and Steve borrowed money from a bank at an annual interest rate of 6 percent. During their first year of operation, the partners' total revenue was $100,000. The market value of their capital at the end of the year was $20,000. If Bill and Steve do not design Web pages, their best alternatives are to return to their previous job. a) What is the firm's economic depreciation? b) What are the partnership's costs? c) What is the firm's economic profit in the first year of operation?
Assume the production of a particular good is characterized by significant economies of scale. In addition, three different versions of the good can be produced, and large segments of the population prefer different versions of the good
In this case, the preferred market structure for this good would be: A) perfect competition. B) monopoly. C) monopolistic competition. D) oligopoly.
In the following situation the tax system is Taxable income $5,000 $10,000 $20,000 Tax payments $500 $600 $1,600
a. progressive b. proportional c. regressive d. based on the benefits received e. there is insufficient information to answer the question
Government purchases are included in national product.
Answer the following statement true (T) or false (F)