Considering production decisions for only the short run, a firm producing where MC = MR should stop producing if
a. its losses are less than TFC
b. its losses equal TFC
c. its losses are greater than TFC
d. TR is less than TC
e. TR exceeds TVC
C
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Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk roses and 55 silk leaves. If she now produces 60 silk roses and 80 silk leaves, what is the opportunity cost of producing an additional 10 silk roses?
A) 2.5 silk leaves B) 10 silk leaves C) 25 silk leaves D) 55 silk leaves
Refer to the above table. Suppose there are technological advances in the production of smartphones. The new equilibrium price will be
A) $275. B) $375. C) less than $275. D) between $275 and $375.
When households and businesses interact in product markets goods and services are
a. not exchanged b. flowing toward businesses c. flowing toward households d. not used at all e. flowing to both businesses and households
Suppose that the price elasticity of supply is one and the quantity supplied increases by 5%. Other things being equal, the percentage change in the price should be:
A. a 0.5% increase in the price. B. a 5% increase in the price. C. a 0.2% increase in the price. D. a 2% increase in the price.