A profit-maximizing firm in a competitive market is able to sell its product for $7 . At its current level of output, the firm's average total cost is $10 . The firm's marginal cost curve crosses its marginal revenue curve at an output level of 9 units. The firm experiences a
a. profit of more than $27.
b. profit of exactly $27.
c. loss of more than $27.
d. loss of exactly $27.
d
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Indicate whether the statement is true or false
Use the list of items below to answer the question that follows.1.Money market mutual funds held by individuals 2.Savings deposits, including money market deposit accounts 3.Currency held by banks 4.Currency held by the public 5.Shares of corporate stock 6.Small time deposits 7.Checkable deposits 8.Large time deposits Refer to the above table. The M1 money supply is composed of items:
A. 3, 4 and 7. B. 2 and 7. C. 3 and 4. D. 4 and 7.
For the firm, the major goal of profit sharing plans is to:
A. force workers to incur some of the business risk. B. overcome the monopsony problem of having to pay higher wages to attract additional workers. C. overcome the principal-agent problem by better aligning the workers' interests with those of the firm. D. reduce total compensation payments.
Suppose a family-owned donut shop has $80,000 in total revenues, $36,000 in rent, and $20,000 in additional operating costs. The husband and wife work in the shop and pay no wages to themselves or others. The economic profits from the donut shop are
A) $24,000. B) less than $24,000. C) more than $24,000. D) $80,000.