At its profit-maximizing output, the firm in the above figure incurs a total cost of production of
A) $7,000.
B) $9,000.
C) $6,300.
D) $3,900.
A
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Which of the following would be least likely to lead the Justice Department and the FTC to block a proposed horizontal merger?
A) A finding that the resulting firm might be able to unilaterally affect price and output. B) A finding that the potential for entry into the market by new firms would be adversely affected. C) A finding that the potential for coordination among sellers in the market would be enhanced. D) A finding that resulting cost savings and efficiencies would offset any increase in market power.
If average cost is positive
A) marginal cost equals average cost. B) marginal cost exceeds average cost. C) marginal cost is less average cost. D) Not enough information is given.
When the official price for goods and services is below the equilibrium price in a market, prices no longer perform their rationing function efficiently
a. True b. False Indicate whether the statement is true or false
Suppose the economy is in a recessionary gap. If government expenditures are currently $700 billion and tax revenues are currently $450 billion, the (total) budget deficit is _____________. Assume that economists estimate that if the economy were operating at full employment then government expenditures would be $600 billion and tax revenues would be $500 billion. The structural deficit is
_________________ and the cyclical deficit is _______________. A) $1.15 trillion; $1.1 trillion; $100 billion B) $400 billion; $300 billion; $100 billion C) $400 billion; $100 billion; $300 billion D) $250 billion; $100 billion; $150 billion