Suppose a profit-maximizing firm in a perfectly competitive market is earning an economic profit of $1,345. If the firm's fixed cost increases from $200 to $300, the firm will:
A. earn a greater profit.
B. raise its price.
C. earn a smaller profit.
D. reduce its output.
Answer: C
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Which of the following statements is false?
A. The Dow Jones Industrial Average went down by 40 percent during the decade of the 1930s. B. Based on data from the period between 1926 and 2004, the probability of having a positive return on an investment in the stocks contained in the Dow Jones Industrial Average would have been 97.1 percent if the stocks had been held for 10 years. C. When reading the stock market page of a newspaper, if the column marked "Div." is blank, it means that the company does not currently pay out dividends. D. A stock that yields 4 percent is better than a stock that yields 5 percent, all else being the same.
In which of the following years was there a recession?
A. 1942 B. 1950 C. 1965 D. 1973
By the property of "more is better," the consumer views the products under consideration as:
A. bads. B. goods. C. normal. D. inferior goods.
Explain why both nations with high living standards and nations with low living standards face the problem of scarcity. If you won $1 million in a lottery, would you escape the scarcity problem?
What will be an ideal response.