Figure 10-2
?
Figure 10-2 shows demand and short-run cost curves for a perfectly competitive firm. At its profit-maximizing level of output, the firm’s short-run TC is represented by area
A. ADFO.
B. BGHC.
C. BGIO.
D. ADGIO.
Answer: A
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Refer to Table 10-6. What is Jay's optimal consumption bundle?
A) 1 burger and 2 cans of Pepsi B) 2 burgers and 3 cans of Pepsi C) 3 burgers and 2 cans of Pepsi D) 3 burgers and 1 can of Pepsi
An externality refers to the idea that
A) explicit costs differ from implicit costs. B) decision-makers do not internalize all the costs. C) we cannot do anything that does not affect other people. D) private and internal costs differ.
An alternative to using simultaneous equation models with panel data is:
A. to use OLS estimates after first differencing the data. B. to use fixed effects transformation on the equations and then apply 2SLS. C. to convert the equations into reduced form and then apply feasible generalized least squares. D. to convert the equations into reduced form and then apply OLS.
Roger lives in Iceland and purchases a snowmobile manufactured in the United States. This purchase is
A. both a U.S. and Icelandic export. B. both a U.S. and Icelandic import. C. a U.S. import and an Icelandic export. D. a U.S. export and an Icelandic import.