?A perfectly competitive firm sells 200 units at a market price of $40 per unit. Its marginal cost is $50, and it incurs a variable cost of $10,000. To improve its profit or loss situation, this firm should _____.
a. ?continue to produce the present level of output
b. ?reduce output but not to zero
c. ?shut down
d. ?increase output sold to 300 units
e. ?raise the price to $45 per unit
Answer: c. ?shut down
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To economists, the term utility refers to the
a. usefulness of a good in relation to its scarcity b. necessity of a good c. ratio of marginal utility of a good to its price d. quantity of goods a consumer has in reserve, meaning goods unconsumed e. benefit or satisfaction a consumer receives consuming a good
When sketched as a function of national income, the investment curve is
a. horizontal b. vertical c. upward sloping d. downward sloping e. parabolic
Knowing that Coke controls 80 percent of the cola market and Pepsi controls 20 percent, we can conclude the cola market is:
A. monopolistically competitive. B. a monopoly. C. an oligopoly. D. perfectly competitive.
Exports ________ GDP and imports ________ GDP.
A. increase; decrease B. decrease; increase C. increase; increase D. decrease; decrease