Use the following graph for a perfectly competitive firm to answer the next question.
If the firm is maximizing profits in the short run, the amount of economic profit per unit is
A. DH.
B. EH.
C. DE.
D. DB.
Answer: B
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Suppose that Firm A cheats, and B does not. What is A's payoff from cheating?
a. 0 b. 50 c. -10 d. 25
Katie had a before-tax income of $40,000 and paid taxes of $6,000 . Rinji had a before-tax income of $35,000 and paid taxes of $5,250 . Based on this information, the tax system is
a. There is insufficient information to answer the question. b. progressive c. based on the benefits received d. regressive e. proportional
The branch of economics that studies the economy as a whole is: a. normative economics. b. positive economics
c. microeconomics. d. macroeconomics.
XYZ Corporation plans to open a manufacturing plant in China, but the company has not retained any of its yearly profits for this purpose. How will XYZ Corporation likely raise the money to finance its offshore expansion?
a. Selling bonds to institutional investors b. Selling bonds to municipal households c. Issuing Treasury bills to stakeholders d. Encouraging momentum selling of its stock