Exhibit 8-12 Marginal revenue and cost per unit curves
If price is equal to OD for the firm shown in Exhibit 8-12, total profit is maximized when:
A. output is X.
B. output is Y.
C. output is Z.
D. output is greater than Z.
Answer: C
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Suppose a market were currently at equilibrium. A rightward shift of the demand curve would cause
A) an increase in price but a decrease in quantity. B) a decrease in price but an increase in quantity. C) an increase in both price and quantity. D) a decrease in both price and quantity.
A. monitor and enforce trade agreements, while also promoting free trade.
A. safety policies. B. labor standards. C. environmental regulations. D. All of these are true.
Which of the following best explains the difference between neoclassical economics and behavioral economics?
A. Neoclassical economics believes that government should play a minimal role in the economy, while behavioral economics calls for a more active role for government. B. Neoclassical economics assumes that people are rational in their decision making, while behavioral economics believes people make systematic errors. C. There is no real difference; behavioral economics just studies more intently how the rational decision-making process works. D. Neoclassical economics no longer offers valid explanations for economic outcomes, while behavioral economics does.
If you are anticipating having to pay $100,000 to a lender 10 years from now and the interest rate rises, the present value of this sum
A. falls. B. rises. C. first rises, then falls. D. remains unchanged.