At an output level above the profit-maximizing level, for a perfectly competitive firm, a reduction in output will:
a. reduce total revenue more than total cost.
b. reduce total cost more than total revenue.
c. increase total revenue more than total cost.
d. increase total cost more than total revenue.
e. decrease total revenue and total cost by the same amount.
b
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Courtney goes for an hour bike ride which yields a marginal utility of 8. She stops and gets an ice cream cone, and then rides her bike for another hour. We can say:
A. the utility gained from a second ice cream cone was more than a second hour of bike riding. B. the utility gained from the ice cream was more than 8. C. the utility gained from the ice cream was less than the second hour of bike riding. D. the utility gained from a third hour of biking would be less than the utility gained from the one ice cream.
Which of the following does not result in a change in the demand for foreign currency?
a. c and d. b. changes in income. c. changes in foreign currency supply. d. changes in the foreign exchange rate. e. changes in the interest rate.
Because it is difficult for economists to use experiments to generate data, they generally must
a. do without data. b. substitute assumptions for data when data are unavailable. c. rely upon hypothetical data that were previously concocted by other economists. d. use whatever data the world gives them.
The heart of the supply-side economic program was to
A. raise taxes. B. lower taxes. C. raise government spending. D. put people to work in government jobs.