Markets work because they allocate sales to the potential sellers who most value the right to sell a good, as indicated by their ability to produce the good at the lowest cost. This statement illustrates:
A) total surplus.
B) producer surplus.
C) deadweight loss.
D) consumer surplus.
B) producer surplus.
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When Scuba, Inc., lowered the price of a tank of compressed air by 20 percent, it sold 10 percent more tankfuls. The price elasticity for compressed air is
A. 2 B. 1/2. C. 1 D. 20
A perfectly competitive firm is producing more than the profit-maximizing amount of its product. You can conclude that its
A) total cost exceeds its total revenue. B) average total cost exceeds the price of the product. C) marginal revenue is less than the price of the product. D) marginal cost exceeds the price of the product.
What is meant by diversifying an investment portfolio? What are the advantages of diversification?
What will be an ideal response?
Total physical product shows what happens to the quantity of a firm’s output when that firm changes the quantity of an input in the production process.
Answer the following statement true (T) or false (F)