In the short run, a perfectly competitive firm will maximize profit by producing where:
a. MC = MR
b. MC = ATC.
c. ATC = MR.
d. AVC = MC.
a
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The expenditure line in the aggregate expenditures diagram represents the
A. relationship between expenditure and output. B. equilibrium condition that Y = AE. C. equilibrium condition that Y = Y*. D. relationship between consumption and disposable income.
Human capital refers to the
A) accumulated financial capital people have acquired. B) accumulated skill and knowledge of human beings. C) accumulation of money by human beings. D) accumulation of money and equipment used by human beings. E) accumulated equipment used by human beings.
Direct controls imposing identical emission limits on all polluters are
A) efficient if emissions can be accurately monitored, which is seldom possible. B) equitable because all polluters bear equal costs. C) likely to require a great deal of high-cost pollution reduction. D) more efficient and equitable than a system of fines because fines matter less to large than to small polluters.
Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one ticket falls from $25 to $10
A) consumer surplus decreases from $24 to $12. B) consumer surplus increases from $0 to $31. C) only three tickets will be sold. D) everyone will buy a ticket.