Is it a good thing to go to a point where marginal profit is zero? Explain
A common misunderstanding about marginal analysis is the idea that it seems foolish to go to a point where marginal profit is zero. "Isn't it better to earn a positive marginal profit?" This notion springs from confusion between the quantity one is seeking to maximize (total profit) and the gauge that indicates whether such a maximum has actually been attained (marginal profit). It is better to have a positive total profit than a zero total profit. In contrast, a zero value on the marginal profit gauge merely indicates that all is well?that total profit is at its maximum, that we are at the top of the profit hill, where the slope is zero.
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The definition of a price taker is:
A. having market power. B. having no control over the market price. C. being competitive. D. having government determine what you sell goods and services for.
_____ is the change in total utility that occurs because one more unit of a good is consumed or acquired
a. Total utility b. Marginal utility c. Disutility d. Diminishing marginal utility e. Expected utility
What are the three important macroeconomic goals about which most economists, and society at large, agree?
a. economic growth, full employment, and low interest rates b. economic growth, full employment, and stable prices c. economic growth, zero unemployment, and falling prices d. economic growth, low unemployment, and a balanced budget e. economic growth, a balanced budget, and balanced international trade
Economics is the social science that studies
A) the real reasons people buy goods and services.
B) the psychology of individuals and businesses.
C) whether a nation has enough natural resources.
D) how people make choices to cope with scarcity.
E) how choices made in the social interest could eliminate scarcity.