Assume the market for orange juice is perfectly competitive. Orange juice producers currently earn a zero economic profit. Orange juice producers will likely begin to earn economic profits in the short run, and some producers will enter the industry until all firms in the industry earn a zero economic profit, if consumers
A. do not change their demand for orange juice.
B. switch from grape juice to orange juice.
C. switch from orange juice to grape juice.
D. All of the above are correct.
Answer: B
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The marginal propensity to consume (MPC) is
a. the change in consumption divided by the change in disposable income b. total consumption divided by total disposable income c. the change in disposable income divided by the change in consumption d. total disposable income divided by total consumption e. the change in disposable income minus the change in consumption
Thinking at the margins means deciding about
a. maximizing goods and services. b. investing with borrowed money. c. adding or subtracting one additional unit of some resource. d. increasing or decreasing technical know-how.
The revenue-maximizing output for a nondiscriminating monopolist represented in the table given below is?
A. 0 units B. 2 units C. 3 units D. 4 units E. 5 units
The Lawn Ranger, a landscaping company, has total costs of $5,000 and total variable costs of $1,000. The Lawn Ranger's total fixed costs are
A. $0. B. $4,000. C. $6,000. D. indeterminate because the firm's output level is unknown.