If the firm is incurring losses in the short run, then which of the following is true?
A. P < ATC
B. P > ATC
C. P > MC
D. MC > ATC
Answer: A
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The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a price support program to achieve their goal. How much wheat must the government buy?
A. 10 billion bushels per year B. 4 billion bushels per year C. 6 billion bushels per year D. None
Tony is the owner of Tony's Taqueria. Tony is a profit-maximizing owner whose firm operates in a competitive market. An additional worker costs Tony $200 and has a marginal productivity of 40 tacos. Assuming no other variable costs, what is the marginal cost of a taco?
a. $200 b. $8 c. $5 d. There is insufficient information available to answer this question.
When average variable costs are rising
A. average physical product is rising. B. average physical product is falling. C. marginal costs is falling. D. marginal physical product is also rising.
The Trans-Pacific Partnership (TPP) is an agreement between the United States and ________ that was meant to reduce trade barriers
A) South America B) the European Union C) China D) eleven other countries