A profit maximizing firm selects output such that
A) average profit is maximized.
B) total profit is maximized.
C) marginal profit is maximized.
D) Both A and B.
B
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Suppose you are given the following demand data for a product.PriceQuantity Demanded$1030940850760670The price elasticity of demand (based on the midpoint formula) when price decreases from $9 to $7 is
A. -1.16. B. -2.27. C. -.63. D. -1.60.
Use the above table to answer these questions: (a) In what year did disinflation begin? (b) In what year did deflation begin?
The fundamental economic problem is: a. poverty
b. unemployment. c. scarcity. d. inflation.
Given the consumption function C = $500 billion + 0.80Y, an increase in disposable income from $6,000 billion to $7,000 billion will cause consumption to increase by:
A. $800 billion. B. $1,000 billion. C. $1,300 billion. D. $1,500 billion.