Refer to the above figure. If the market price is equal to A, which statement can be made about profits?
A) Profits are positive and equal to BCEA.
B) Profits are positive and equal to BCFG.
C) Profits are negative and equal to BCEA.
D) Profits are negative and equal to GFQ 0.
C
You might also like to view...
Financial intermediaries are important because
a. the process of finding loans is complicated b. firms are usually unwilling to part with extra revenue c. they are examples of banks d. we could not function in society without them e. they facilitate efficient transactions between borrowers and lenders
The opportunity wage is often a better measure of executive pay than
A. MPP because executives do not have an MPP. B. Derived demand because the elasticity of supply for an individual is greater than 1.0. C. MRP because of the difficulty in quantifying executive output. D. Opportunity costs of executive leisure.
One symptom of the inefficiencies associated with monopolistic competition is industry wide excess capacity.
Answer the following statement true (T) or false (F)
The problem of limited and bundled choice in the political process tends to
1. The problem of limited and bundled choice in the political process tends to a. increase economic efficiency, because politicians choose programs with positive and negative net benefits. b. reduce economic efficiency, because politicians choose programs with positive and negative net benefits. c. increase economic efficiency, because politicians choose programs with average net benefits. d. reduce economic efficiency, because politicians choose programs with average net benefits. 2. Public bureaucracies are possibly less efficient than business firms because a. the private market is driven by profit, but this competitive force does not operate in public bureaucracies. b. the private market has more resources than public bureaucracies. c. the private market has access to better technologies than public bureaucracies. d. workers in public bureaucracies have less supervision and shirk their responsibilities.