Joe's Butcher Shop is producing where MR = MC, Joe's Butcher Shop must be
A) earning a zero economic profit.
B) incurring a loss.
C) maximizing profits.
D) maximizing revenue but not maximizing profits.
C) maximizing profits.
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According to your text, the economic way of thinking focuses on
A) actions, interactions, and consequences. B) intentions, motivations, and results. C) hypothesis generation, determination of control group, and testing of hypothesis. D) id, ego, and superego.
The real interest rate is equal to the
A) nominal interest rate plus the inflation rate. B) nominal interest rate minus the inflation rate. C) nominal interest rate times the inflation rate. D) nominal interest rate divided by the inflation rate. E) inflation rate minus the nominal interest rate.
If Qs = -20 + 10p, and Qd = 400 - 20p, what is the equilibrium quantity?
A) 440 B) 146.6 C) 360 D) 120
The staggering of wage and price decisions suggests that
A) people do not possess rational expectations. B) people do possess rational expectations. C) the economy will adjust slowly to shocks even if people possess rational expectations. D) the Lucas critique is entirely correct. E) real business cycle theory is correct.