Refer to the graph shown. If the firm seeks to maximize profit, it should set a price equal to:
A. $10.
B. $ 6.
C. $ 4.
D. $ 8.
Answer: D
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Inflation that is ________ than what is expected benefits ________ and hurts ________
A) greater; lenders; no one B) greater; lenders; borrowers C) less; lenders; borrowers D) less; borrowers; lenders
The big current-account deficits in the late 1880s and early 1890s were financed primarily by
(a) Borrowing from other nations, especially England (b) Interests earned on bonds and dividends paid on other investments (c) Taxes (d) Sale of public land
As an additional consumer obtains the benefits of a public good such as national defense, the benefits to existing consumers: a. decline
b. increase. c. increase in the short run, but decrease in the long run. d. do not change.
Suppose an economy is operating at its maximum sustainable output rate. Neither recession nor economic boom are present. Which of the following would be true?
a. The economy would be considered at full employment. b. Actual GDP would exceed potential GDP. c. Actual unemployment will be less than the natural rate of unemployment. d. One hundred percent of the labor force is employed.