When price and marginal cost are equal for a perfectly competitive firm, the firm is
A. maximizing economic profit.
B. earning negative economic profit.
C. maximizing total revenue.
D. minimizing average total cost.
Answer: A
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The monetary base minus currency in circulation equals
A) reserves. B) the borrowed base. C) the nonborrowed base. D) discount loans.
The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. Number of EmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The marginal cost of the 4th employee is:
A. $11,000. B. $9,500. C. $10,750. D. $13,000.
Bob has heard rumors that his employer will be merging with another firm and many employees may lose their jobs, and he wants to be prepared in case he loses his job. If he begins to save more in response to this rumor, it is a ________ reason for saving.
A. life-cycle B. public C. precautionary D. private
The income of consumers increases. and the wage rate in the seafood industry increases. As a result
A) the price of seafood stays the same and the quantity sold can either increase or decrease, depending on whether the change in demand is greater than the change in supply. B) the price of seafood increases and the quantity sold can either increase, decrease or stay the same depending on whether the change in demand was greater than the change in supply. C) the equilibrium quantity sold increases and price can either increase or decrease, depending on whether the change in demand is greater than the change in supply. D) the equilibrium quantity sold can either increase or decrease and the price can either increase or decrease, depending on whether the change in demand was greater than the change in supply.