When marginal revenue equals marginal cost, the firm
a. should increase the level of production to maximize its profit.
b. may be minimizing its losses rather than maximizing its profit.
c. must be generating positive economic profits.
d. must be generating positive accounting profits.
b
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Use the following table to answer the next question. GDP figures are in billions of dollars. YearNominal GDPReal GDPPrice Index15,2004,800--25,500--11235,7505,000--What was real GDP in year 2?
A. $4,820 billion B. $4,875 billion C. $5,320 billion D. $4,911 billion
Average total costs are defined as
A) total costs divided by the change in output. B) total costs divided by output. C) the change in total costs when output changes. D) average variable costs plus marginal costs.
?A common form of sample selection that does not observe the dependent variable because of the outcome of another variable is called _____.
A. ?nonrandom sample selection B. ?exogenous sample selection C. ?incidental truncation D. ?endogenous sample selection
Which of the following terms identifies something that macroeconomists would study but that microeconomists would NOT?
A) incentives B) resources C) rationality D) aggregates