Among economists, a basic economic policy debate regarding markets is:
A. whether markets ought to have prices.
B. what data is available for a model given institutions.
C. whether to let economic forces exist.
D. what coordinating mechanism will best solve a specific problem.
Answer: D
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The U.S. economy of the mid 1980s through 2007 is typically referred to as ________
A) "The Great Depression" B) "The Great Inflation" C) "The Great Moderation" D) all of the above E) none of the above
The above figure shows the short run cost curves for a typical firm in a competitive market. If price = 8, then the firm
A) is earning positive profits. B) should produce 50 units. C) should shut down. D) None of above.
If a firm's fixed cost (overhead) increases, what happens to its profit-maximizing price and output?
When a competitive firm doubles the quantity of output it sells, its
a. total revenue doubles. b. average revenue doubles. c. marginal revenue doubles. d. profits must increase.