A firm in a perfectly competitive industry produces its profit-maximizing quantity, 40 units. Industry price is $3, total fixed costs are $45, and total variable costs are $60. The firm's economic profit is
A. $15.
B. $30.
C. $35.
D. $60.
Answer: A
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To close a recessionary gap, the Fed ________ interest rates which ________ aggregate spending and ________ short-run equilibrium output.
A. reduces; increases; decreases B. raises; decreases; increases C. raises; decreases; decreases D. reduces; increases; increases
Refer to Figure 7-1. At the market equilibrium, the deadweight loss is equal to
A) $0. B) $250,000. C) $500,000. D) $1,000,000.
Strategy is
a. The art of matching the resources and capabilities of a firm to the opportunities and risks in its environment b. Developing a resource for the company that is both rare and valuable to create competitive advantage c. Making sure that the resource developed is non-fungible to create a sustainable advantage d. All of the above
The demand curve facing a typical firm in a perfectly competitive market is horizontal
a. True b. False