A firm in a perfectly competitive industry is producing 50 units, its profit-maximizing quantity. Industry price is $2, total fixed costs are $25, and total variable costs are $40. The firm's economic profit is
A. $15.
B. $30.
C. $35.
D. $60.
Answer: C
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The figure above shows the U.S. production function. From 1986 to 2008 the United States experienced major advances in technology as well as an increase in the working-age population. The combined effect can best be shown by a
A) movement from point W to point X. B) movement from point Y to point Z. C) movement from point Y to point X. D) movement from point W to point Z.
Firms that are most likely to buy marketable pollution rights are those that produce the most pollution per unit of output produced
Indicate whether the statement is true or false
A move from H to I represents
A. an increase in quantity supplied.
B. a decrease in quantity supplied.
C. an increase in supply.
D. a decrease in supply.
The nondiscriminating pure monopolist's demand curve:
A. is the industry demand curve. B. tends to be inelastic at high prices and elastic at low prices. C. is identical to its marginal revenue curve. D. shows a direct or positive relationship between price and quantity demanded.