If a perfectly competitive firm is a profit-maximizer, it produces where
a. MR>MC b. P>MR c. P = MC d. TR = TC
c. P = MC
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Generally with bond ratings, the ________ the rating, the higher the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default
A) lower; higher B) higher; higher C) higher; lower D) lower; lower
Contractionary fiscal policy involving federal spending cuts or tax increases can help to reduce the upward pressure on the _____________ level by shifting aggregate demand to the left.
a. trade b. production c. price d. employment
Which of the following companies would benefit the most from a carbon tax?
A. A trucking company B. A coal mining equipment manufacturer C. A producer of wind turbines D. An oil company
Refer to Scenario 9.7 below to answer the question(s) that follow. SCENARIO 9.7: Julio borrowed $80,000 from his great aunt to open a coffee stand at a local flea market. He agrees to pay his great aunt a 5% yearly return on the money she lent him. His other yearly fixed costs equal $16,000. His variable costs equal $60,000. He sold 50,000 cups of coffee during the year at a price of $3.00 per cup.Refer to Scenario 9.7. Julio's profit is
A. $0. B. $30,000. C. $50,000. D. $70,000.