Acme is a perfectly competitive firm. It has the total cost schedule given in the above table. Acme's product sells for $8.00 per unit. What amount of output is the most profitable and what is Acme's economic profit or economic loss?
What will be an ideal response?
Acme's profit-maximizing level of output is 7 units. Acme's total economic profit equals its revenue, $56.00 ($8.00 per unit × 7 units), minus its total cost, $49.80 at this level of output, or $56.00 - $49.80 = $6.20.
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The fact that voters perceive their votes as unlikely to actually change the outcome of an election causes
a. voters to have little incentive to become informed about candidates and political issues. b. voters to spend a great deal of effort becoming informed about candidates and political issues. c. the percent of people who actually turn out to cast a vote on election day to be very high. d. people to be extremely reluctant to "waste" their votes on a third-party candidate.
A technological improvement that causes an increase in the marginal product of a resource will:
A. Decrease the demand for the resource B. Increase the demand for the resource C. Decrease the marginal revenue product D. Increase the marginal resource cost
In a perfectly competitive market, total revenue:
A. is equal to price multiplied by quantity sold. B. varies due to changes in price, since quantity is constant. C. should vary across firms. D. measures how much revenue the firm takes in from all sales less any costs they incur.
Early Keynesians concluded that the quantity of money was not important because they assumed
a. low interest elasticity of money demand and high interest elasticity of the demand for output. b. high interest elasticity of money demand and low interest elasticity of the demand for output. c. high interest elasticity of money demand and high interest elasticity of the demand for output. d. both low interest elasticity of money demand and of the demand for output.