If a firm's average cost is declining, setting price equal to marginal cost will
a. maximize the firm's profits.
b. minimize the firm's losses.
c. guarantee that the firm will lose money.
d. help the firm earn the opportunity costs of its resources.
c
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According to your textbook, a scientist of any kind
A) works with some assumptions and biases. B) never confront tradeoffs. C) offer only the best evidence to support his or her theory. D) be the best candidate for the Nobel Prize in Economics.
Government policy under neoclassical theory should deal with
a. frictional unemployment. b. cyclical unemployment. c. natural unemployment. d. all forms of unemployment.
The decision to smoke cigarettes is not subject to present bias because the health risks of smoking cigarettes are widely known.
Answer the following statement true (T) or false (F)
A tax subsidy is involved in employer-financed health insurance because:
A. all working adults are covered by Medicare. B. all working adults are covered by Medicaid. C. employer payments for health insurance are not subject to income or payroll taxes. D. corporations that provide health insurance pay lower corporate income tax rates.