Thomas Edison once said that he began making real profit on light bulbs when he dumped his surplus on the European market at less than the "cost of production." From this we can deduce Edison
a. did not want to maximize profit.
b. understood the difference between marginal and average cost.
c. had a different definition of the term "profit."
d. did not understand the difference between fixed and variable cost.
b
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Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. The coupon rate for bond B is
A. 0.04 percent. B. 4.3 percent. C. 4.1 percent. D. 11 percent.
Describe the crisis in Russia starting from 1989. Explain why?
What will be an ideal response?
Economic principles are generalizations relating to ___________ in economic behavior or to the economy itself.
a. positive tendencies b. extreme tendencies c. inverse tendencies d. average tendencies
The balance sheet below is for the First Federal Bank. Assume the required reserve ratio is 20 percent.
Refer to the above information. If the original bank balance sheet was for the whole commercial banking system rather than a single bank, loans and deposits could have been expanded by a maximum of:
A. $40,000
B. $100,000
C. $200,000
D. $300,000