Profit maximization occurs where
A) each factor is used up to the point where its marginal revenue product is equal to its marginal factor cost.
B) each factor is used up to the point where its marginal physical product is equal to its marginal factor cost.
C) average variable cost equals marginal cost.
D) average variable cost equals average total cost.
A
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Refer to Budget Lines. The only situation where we can conclude that this consumer's tastes must have changed is when we observe himAnswer the following statement(s) true (T) or false (F)
a. buying B last year and buying A this year.
b. buying D last year and buying A this year.
c. buying B last year and buying C this year.
d. buying D last year and buying C this year.
Which of the following statements best describes equilibrium?
a. The area above the point where the supply curve (S) and the demand curve (D) cross is called the equilibrium. b. The area below the point where the supply curve (S) and the demand curve (D) cross is called the equilibrium. c. The point where the supply curve (S) and the demand curve (D) cross is called the equilibrium. d. Any point above where the supply curve (S) and the demand curve (D) cross is called the equilibrium.
Even economists who advocate small government agree that
a. national defense is a public good and that the government should provide it. b. national defense is a common resource and that the government should provide it. c. national defense is a public good, but many of them believe that it should be provided by private firms rather than by the government. d. national defense is a common resource, but many of them believe that it should be provided by private firms rather than by the government.
Indirect taxes include all of the following except
A. sales taxes. B. customs duties. C. property taxes. D. license fees.