Refer to Figure 12-1. If the firm is producing 700 units, what is the amount of its profit or loss?
A) profit equivalent to the area A
B) loss equivalent to the area A
C) loss of $280
D) There is insufficient information to answer the question.
D
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Total utility is maximized in the consumption of two goods by
A) maximizing expenditure on each good. B) equating the marginal utility for each good consumed. C) equating the total utility of each good divided by its price. D) equating the marginal utility per dollar for each good consumed.
An example of direct finance would be when
A) a person purchases a certificate of deposit from a bank. B) a person buys a life insurance policy. C) a person buys 100 shares of stock from a corporation. D) a bank makes a loan to a customer.
Which of the following is not considered a barrier to entry into a monopoly market?
A. having a natural monopoly. B. ownership of a key resource. C. government intervention. D. an new product-type is offered.
Which of the following about demand is true?
a. The height of the demand curve for a product at a given quantity represents the marginal value derived by the consumption of that unit. b. The height of the demand curve for a product at a given quantity reflects the total value consumers derive from all units of the good consumed. c. The total area above the demand curve for a product is equal to consumer surplus. d. At every quantity, the height of the demand curve for a product represents the cost of producing that unit.