If firms are producing at a profit-maximizing level of output where the price is equal to the average total cost:
A. economic profits may be positive.
B. economic profits must be zero.
C. accounting profits may be negative.
D. accounting profits must be zero.
Answer: B
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Which statement is true?
A. Entrepreneurial ability is in short supply in the U.S. B. Land, labor and capital may be considered passive resources. C. The concept of opportunity cost is irrelevant when there is scarcity. D. None of these statements are true.
In the table above, how many jackets must Mary forgo for every dress she makes?
A) 2/3 of a jacket B) 12 jackets C) 3/4 of a jacket D) 8 jackets E) 1 1/2 jackets
Suppose Larry's Lariats produces lassos, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. The total costs for this company would include:
A. the cost of rope. B. employee's wages. C. the rope-cutting machine. D. All of these expenses would be included in total cost.
The horizontal summation of all individual demands at different given prices results in the:
a. market supply curve. b. individual supply curve. c. individual demand curve. d. equilibrium demand and supply curves. e. market demand curve.