A company draws its total cost curve and total revenue curve on the same graph. If the firm wishes to maximize profits, it will select the output at which the
A. vertical distance between the two curves is greatest.
B. total cost curve cuts the total revenue curve.
C. horizontal distance between the two curves is greatest.
D. slope of the total revenue curve is greatest.
Answer: A
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The Keynesian short-run aggregate supply (SRAS) curve
A) shows that real Gross Domestic Product (GDP) will increase only if the price level increases. B) is horizontal. C) assumes a full-employment level of real Gross Domestic Product (GDP). D) does not reflect any changes in nominal Gross Domestic Product (GDP).
Figure 4.4 illustrates the supply of tacos. A technological advancement which makes tacos cheaper to produce would most likely cause a movement from
A) point a to point c. B) point c to point a. C) S0 to S2. D) S2 to S0.
For the same sized substitution effect, own-price demand curves for inferior goods are steeper than own price demand curves for normal goods.
Answer the following statement true (T) or false (F)
A tariff is a
A) legal limit on sales of a foreign product in the domestic market. B) regulation of the quality of a foreign product sold in the domestic market. C) tax on sales of a foreign product in the domestic market. D) voluntary limit on sales of a foreign product in the domestic market.