If a firm is able to cover its variable costs by operating in the short run then, at its best output level, the
a. marginal revenue is equal to marginal cost
b. vertical distance between MR and MC is maximized
c. vertical distance between TR and TC is minimized
d. marginal cost curve lies above the marginal revenue curve
e. marginal cost curve is minimized
A
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A firm will increase its production when
a. its marginal revenue rises. b. its marginal cost rises. c. its fixed costs fall. d. the demand for its product falls.
The most significant change in the economic environment that changed the demand for financial products in recent years has been
A) the aging of the baby-boomer generation. B) the dramatic increase in the volatility of interest rates. C) the dramatic increase in competition from foreign banks. D) the deregulation of financial institutions.
Refer to Figure 9.3. If the government establishes a price ceiling of $1.00, consumer surplus will
A) fall by $50. B) fall by $150. C) remain the same. D) rise by $50. E) rise by $150.
When does equilibrium occur?
a. when quantity supplied equals quantity demanded b. when demand equals supply c. when consumers buy as much of the good as they want d. when suppliers sell as much of the good as they want