Based on the figure above, if the firm produces 10 cans per day, the firm ________ maximizing its profit and is ________
A) is; incurring an economic loss
B) is; making zero economic profit
C) is; making an economic profit
D) is not; incurring an economic loss
E) is not; making zero economic profit
C
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Marginal cost is the cost
A) that your activity imposes on someone else. B) that arises from an increase in an activity. C) of an activity that exceeds its benefit. D) that arises from the secondary effects of an activity.
All of the following lead to more rapid economic growth EXCEPT
A) restricting international trade. B) encouraging higher rates of saving. C) supporting more research and development. D) encouraging higher quality education.
In general, firms in a cartel:
A. agree to set price equal to marginal cost. B. do not consider the actions of the other firms in the cartel when making output decisions. C. produce levels of output exceeding the monopoly output level. D. agree to charge the price the monopolist would charge.
When the economy is in the liquidity trap, the
A) LM curve is horizontal. B) LM curve is vertical. C) IS curve is horizontal. D) IS curve is vertical.