Economists assume that firms seek to
a. maximize accounting profit
b. maximize economic profit
c. maximize total revenue
d. maximize normal profit
e. minimize cost
B
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Other things constant, which case would tend to reflect the highest elasticity of demand for eggs?
A) A restaurant that spends 1% of their budget on eggs B) A restaurant that spends 2% of their budget on eggs C) A restaurant that spends 5% of their budget on eggs D) The question can't be answered without information on the price of eggs.
Regulatory capture is where
A) governments take over monopolies through use of regulation. B) firms impose barriers to entry on regulators. C) regulators of an industry look out for the industry instead of society. D) the government taxes the profits of monopolies such that all producer surplus goes to the government.
Refer to the information provided in Figure 2.6 below to answer the question(s) that follow.
Figure 2.6Refer to Figure 2.6. If the economy is at ppf2, a change in consumer taste would be shown by a
A. movement along ppf1. B. movement along ppf2. C. shift from ppf2 to ppf1. D. shift from ppf1 to ppf2.
Refer to Figure 12-15. Assume that the medical screening industry is perfectly competitive and that some firms are making short-run losses
Suppose the medical screening industry runs an effective advertising campaign which convinces a large number of people that yearly CT scans are critical for good health. Which of the diagrams in the figure best describes what happens in the industry? A) Panel A B) Panel B C) Panel C D) Panel D