Economists refer to the ideal combination of the price a firm should charge and the quantity a firm should produce as
A) profit maximization.
B) maximized production.
C) perfect competition.
D) optimus prime.
A
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The expenditure lags between fiscal actions and their effects on aggregate demand are probably fairly short.
Answer the following statement true (T) or false (F)
For the price in a market to remain the same, while the quantity traded fell, both supply and demand would have to shift to the left
a. True b. False Indicate whether the statement is true or false
Suppose that a price-taking firm charges $12 for its product and has a cost function given by C(Q) = 2Q + (Q2/60). The corresponding marginal cost is given by MC(Q) = 2 + (Q/30). How much output should the firm produce? What if the firm has $2,000 of avoidable fixed costs?
What will be an ideal response?
When economists say the demand for a good is highly inelastic, they mean that
a. even if the price rose substantially, suppliers would be unwilling to offer much more of the good. b. the facilities utilized by producers of the good are inflexible; producers cannot easily expand their facilities, even in the long run. c. consumers will respond to a change in the price of the good by purchasing substantially more of it. d. a large (percentage) change in the price of a good will result in only a small (percentage) change in the quantity demanded.