Refer to the above figure. Profits for this firm will be maximized at
A. point C.
B. a quantity between points B and C.
C. a quantity greater than point C.
D. point B.
Answer: B
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Which of the following explains why a $100 billion reduction in consumption spending might decrease equilibrium real GDP by more than $100 billion?
a. Say's law. b. The quantity theory of money. c. Flexible resource prices. d. The multiplier principle.
In the open-economy macroeconomic model, the market for loanable funds equates national saving with
a. domestic investment. b. net capital outflow. c. national consumption minus domestic investment. d. None of the above is correct.
Refer to Scenario 7.8 below to answer the question(s) that follow. SCENARIO 7.8: A swimming pool cleaning company has the following production possibilities. With one, two, three, and four workers, the company can clean 5, 12, 17, and 20 pools per day, respectively. Refer to Scenario 7.8. Diminishing returns to labor set in with the ________ worker.
A. first B. second C. third D. fourth
Output in a Cournot duopoly is at a level between that in perfect competition and monopolistic competition.
Answer the following statement true (T) or false (F)