In the standard model of pure competition, a profit-maximizing firm will produce the output quantity in the short run where the gap between:
A. Marginal revenue and marginal cost is the largest, with revenue higher than cost
B. Average revenue and average cost is the largest, with revenue higher than cost
C. Total revenue and total cost is the largest, with revenue higher than cost
D. Average revenue and average variable cost is the largest
C. Total revenue and total cost is the largest, with revenue higher than cost
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Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448The price elasticity of demand (based on the midpoint formula) when price increases from $14 to $16 is
A. -1.37. B. -0.33. C. -1. D. -3.29.
What is the difference between the optimizing strategies used in an English auction and a Dutch auction?
What will be an ideal response?
A public good is ________ and ________
A) rival; excludable B) nonrival; excludable C) rival; nonexcludable D) nonrival; nonexcludable
Lucas and Sargent argue that the short-run trade-off between unemployment and inflation is caused by
A) workers and firms rapidly adjusting wages and prices in response to changes in expectations. B) workers and firms using all the information available to predict inflation. C) workers and firms being fooled by unexpected changes in monetary policy. D) workers and firms using Fed policy to predict inflation.