Economic profits are maximized at the point at which
A) marginal revenues equal marginal costs.
B) accounting profit exceeds economic profit.
C) total revenues are greater than total costs.
D) accounting profits are equal to zero.
A
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After a firm makes short-run adjustments in its production plan following a wage increase,
A. the marginal product of labor will be higher. B. the marginal product of labor will be lower. C. the marginal product of capital will be higher. D. the marginal product of capital will be lower. E. (a) and (c) F. (a) and (d) G. (b) and (c) H. (b) and (d)
If an indifference map for a consumer is made up of straight, negatively sloped lines, the goods are
A) perfect complements. B) unrelated. C) perfect substitutes. D) not desirable.
When people forget that money is ____________ they often make ______________ decisions.
A. fungible; liquid B. fungible; irrational C. liquid; irrational D. liquid; rational
Which of the following is most likely to be an increasing-cost industry?
a. An industry whose firms experience diseconomies of scale b. An industry whose firms experience economies of scale c. An industry that is a major buyer in the markets for the inputs it uses d. An industry that is a very small buyer in the markets for the inputs it uses e. An industry that is a major seller in the markets for its outputs