A firm will tend to select the least costly input combination to produce its output.
Answer the following statement true (T) or false (F)
True
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Life insurance companies are regulated by state governments because
A) they have never experienced bankruptcy. B) they have never experienced profitability. C) they have never experienced widespread failures. D) they hold only highly liquid assets.
When the demand for a monopolist's output falls, the monopolist will
a. not change the price, since it has no competition. b. raise the price in order to compensate for the lower demand. c. charge a lower price. d. cut its costs in order to maintain its profit margin.
The expenditures or output approach to GDP measures it by summing:
a. Compensation of employees, rents, interest, dividends, corporate profits, proprietors' income, and indirect business taxes, and subtracting the consumption of fixed capital b. Compensation of employees, rents, interest, dividends, undistributed corporate profits, proprietors' income, indirect business taxes paid, consumption of fixed capital, and net foreign factor income earned in the United States c. The total spending for consumption, investment, net exports, and government purchases d. The total spending for consumption and government purchases, but subtracting public and private transfer payments
When a monopolist is ________, it has equated marginal revenue and marginal cost.
A. breaking even B. producing efficiently C. maximizing its total revenue D. maximizing profits