Refer to the above figure. Profits for this firm are
A. negative.
B. zero.
C. positive.
D. undetermined without more information.
Answer: C
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What is the current average tariff on imported goods for the world?
a. equal to 2 percent b. equal to 5 percent c. less than 5 percent d. greater than 5 percent
Which of the following is not a necessary condition for effective price discrimination?
A. The seller must be able to separate buyers based on their elasticities. B. The seller must not be a price taker. C. Consumers must not be able to resell the products to other consumers. D. Consumers must tell the seller how much they are willing to pay for the product.
A firm is currently hiring capital and labor so that MPL/PL < MPK/PK. If the firm wishes to maximize profits it should hire
A. more capital and more labor. B. more labor and less capital. C. less labor and more capital. D. less labor and less capital.
Refer to the data. If the price level is 250 and producers supply $450 of real output:
Answer the question on the basis of the following aggregate demand and supply schedules for a hypothetical economy:
A. a shortage of real output of $150 will occur.
B. a shortage of real output of $100 will occur.
C. a surplus of real output of $150 will occur.
D. neither a shortage nor a surplus of real output will occur.