Short-run profits are maximized at the rate of output where
A. Marginal revenue is equal to marginal cost.
B. Marginal revenue is zero.
C. Average total costs are minimized.
D. Total revenue is maximized.
Answer: A
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When actual output is less than potential output, there is ________ output gap and the inflation rate will ________.
A. an expansionary; be lower than the expected rate of inflation B. a recessionary; exceed the expected rate of inflation C. a recessionary; be lower than the expected rate of inflation D. an expansionary; exceed the expected rate of inflation
Refer to the scenario above. In this case, the employer may prevent shirking by ________
A) paying an efficiency wage to each worker B) paying a wage less than minimum wage C) reducing the nominal wage paid to workers D) reducing the real wage paid to workers
With fixed costs of $200 . a firm has average total costs of $5 and average variable costs of $3 . Its output is:
a. 100 units. b. 40 units. c. 66.67 units. d. Need more information
The U.S. national debt at the end of fiscal year 2014 was almost
a. $13.5 trillion. b. $9.0 trillion. c. $18 trillion. d. $1.3 trillion.