Figure 10-2
?
Figure 10-2 shows demand and short-run cost curves for a perfectly competitive firm. In the short run, this firm would
A. earn positive economic profits.
B. earn economic losses.
C. go out of business.
D. Cannot be determined with the information given.
Answer: B
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Figure 10-4
Starting from long-run equilibrium at point F in , at which of the following points would short-run equilibrium occur following a drought in the Midwestern states?
a.
I
b.
F
c.
G
d.
H
According to critics of advertising, when advertising is used by a firm, the price of the firm’s product will ______.
a. fluctuate b. stabilize c. increase d. decrease
Jenner is obtaining a patent for the new diet drink formulation he created. He hopes that Coca Cola and other companies will be interested in licensing his formula. Jenner is protecting his _____ property with the patent.
Fill in the blank(s) with the appropriate word(s).
If an economy is producing on its production possibility frontier but is not producing what people want, the economy
A. is not achieving output efficiency. B. is producing at more than one point on the production possibility frontier. C. is not being productively efficient. D. is experiencing technological advancement.