In the short run, a profit-maximizing firm's decision to produce should be guided by whether
A) its total revenue exceeds its fixed cost. B) its total revenue covers its variable cost.
C) it makes a profit. D) its marginal profit is maximized.
B
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Best guesses of an event occurring in the future are based on
A) estimates derived from the frequency of the event occurring in the past. B) coin flips. C) subjective probability. D) the wisdom of crowds.
Which of the following is a TRUE statement about monopoly and perfect competition?
A) Price is always higher and output higher under monopoly than under perfect competition. B) Because costs do not depend on market structure, price is usually higher and output is always lower under monopoly than perfect competition. C) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition. D) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition, and price may be below marginal cost instead of equal to marginal cost.
Most economists generally argue ________ trying to block technological advances because these technological advances ________.
A. against; are necessary for improved standards of living B. in favor of; increase wage inequality C. against; promote wage equality D. in favor of; cause the economy to grow to rapidly
Which of the following statements is correct?
A. Purely competitive firms, monopolistically competitive firms, and pure monopolies all earn zero economic profits in the long run. B. Purely competitive firms, monopolistically competitive firms, and pure monopolies all earn positive economic profits in the long run. C. In the long run, purely competitive firms and monopolistically competitive firms earn zero economic profits, while pure monopolies may or may not earn economic profits. D. Monopolistically competitive firms earn zero economic profits in both the short run and the long run.