To maximize profit in the long run, a firm must
a. charge the highest price possible
b. produce where demand is unit elastic
c. sell the most output possible
d. minimize the cost of producing any given amount of output
e. produce at minimum long-run total cost
D
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How do we allocate statistical discrepancy among the current, capital, and financial accounts?
A) We have no way of knowing exactly how to allocate this discrepancy. B) Depend on the degree of certainty by which we attribute to these accounts. C) Divide it evenly amongst the three accounts. D) Depend on the convention adopted by the specific financial institution. E) Statistical discrepancy signals human errors made when dealing with financial accounts.
In a market economy, differences in incomes: a. reflect the relative scarcity of resources
b. provide individuals with an incentive to supply resources that are valued by others. c. determine the income distribution among market participants. d. all of the above are correct.
How does the size of the deadweight loss from a tax depend on the price elasticities of supply and demand?
Other things the same, when a Canadian company imports bicycles from the U.S., the open-economy macroeconomic model treats this transaction as part of the demand for dollars in the U.S. foreign-currency exchange market
a. True b. False Indicate whether the statement is true or false