The above figure shows the market for pizza. The market is in equilibrium when the wages paid pizza workers increases. What point represents the most likely new price and quantity?
A) A
B) B
C) C
D) D
E) E
B
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The most important goal of the firm is to
A) maximize its revenues. B) maximize its sales volume. C) maximize its profits. D) minimize its costs.
A firm is said to have excess capacity when it produces the amount of output
A) such that price is greater than marginal cost. B) such that marginal revenue is greater than marginal cost. C) smaller than that which minimizes average total cost. D) larger than that which minimizes average total cost.
If the marginal cost curve is below the average variable cost curve, then
A. average variable cost is decreasing. B. average variable cost is increasing. C. marginal cost is increasing. D. average variable cost is constant.
Refer to the figure above. If the monopolist is regulated to charge the fair-returns price for the profit-maximizing output it produces, ________
A) it makes a profit of $100 B) it makes a profit of $200 C) it makes a loss of $100 D) it makes zero profit