Refer to Figure 15-17. You are a member of a student government and are asked to recommend a price for the course and you argue: "I think the college should charge a price so that it just breaks even on the course" How much profit (or loss) will the college make on the course if it charges this price?
A) -$2,592,000
B) -$1,080,000
C) $0
D) $450,000
C
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All of the following are assumptions of the classical model EXCEPT
A) inflexible wages. B) self-interest of economic actors. C) pure competition. D) absence of money illusion.
Market activity differs from government activity because
a. markets generally force prices to below-cost levels b. governments never charge for the services they provide c. markets do not use voluntary exchange mechanisms d. markets provide a direct link between benefits and costs e. governments have strong incentives to keep costs under strict control
The price elasticity of demand helps determine the effect of price changes on a firm's
a. property taxes b. profits c. quantity supplied d. revenues e. total costs
The minimum point on the marginal cost curve corresponds to the:
a. maximum point on the total cost curve. b. minimum point on the total cost curve. c. inflection point on the total variable cost curve. d. midpoint of the total cost curve.