Refer to Figure 6-25. The equilibrium price in the market before the tax is imposed is.

Based on the figure above, if the firm produces 7 cans per day, the firm ________ maximizing its profit and is ________

A) is; incurring an economic loss B) is; making a normal profit C) is; making an economic profit D) is not; incurring an economic loss E) is not; making a normal profit

Due to the lack of timely data for the price level and economic growth, the Fed's strategy

A) targets the exchange rate, since the Fed can control this variable. B) targets the price of gold, since it is closely related to economic activity. C) uses an intermediate target, such as an interest rate. D) stabilizes the consumer price index, since the Fed can control the CPI.

The table below shows cost data for a perfectly competitive firm.OutputAverage Variable CostAverage Total CostMarginal Cost0---22.5027.502.542.0014.501.562.0010.332.082.138.382.5102.307.303.0122.506.673.5143.006.576.0164.007.1311.0The firm will produce output in the short run only if the market price is at least equal to

A. $6.00. B. $3.00. C. $2.00. D. $3.50.

Assume that a purely competitive firm uses two resources—labor (L) and capital (C)—to produce a product. In which situation would the firm be maximizing profit?

A. Choice A

B. Choice B

C. Choice C

D. Choice D