In Figure 8-5, the firm’s marginal profit at the profit maximizing output level
A. is 10.
B. is 35.
C. is 0.
D. cannot be determined from the diagram.
Answer: C
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Suppose you purchased 500 shares of stock in 2013 for $15 a share, and the price now is $20 a share. If you sell the stock, then your capital gain is
A) $2500. B) $1000. C) $10000. D) indeterminate without knowing the inflation rate.
What are the different types of trade barriers? What are the arguments for trade barriers? What are the consequences of trade barriers?
Which statement is false?
A. Short-run cost assumes a fixed capital size, while long-run cost includes all possible capital levels in determining cost. B. Short-run total cost can never be less than long-run total cost at any given output level. C. Short run ATC and long run ATC are never equal except at the minimum point on the long run ATC curve. D. Long-run marginal cost never intersects long-run average cost as long as increasing returns to scale are present.
A firm should make an investment only if
A. it is profitable in every year. B. the present value of the profits exceeds the present value of the costs. C. the present value of the revenues exceeds the present value of the costs. D. there are no large losses in the early years.