Figure 8-3
Figure 8-3 shows a firm’s total profit function. At an output of 40, the firm’s total profit equals ____.
A. 10
B. 40
C. 200
D. 400
Answer: A
You might also like to view...
Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch. 
If Lee chooses aggression, Cody will respond with ________, and if Lee chooses cooperation, Cody will respond with ________.
A. aggression; aggression B. cooperation; aggression C. cooperation; cooperation D. aggression; cooperation
Interest rates fall and investment falls. Which of the following could explain these changes?
a. The government goes from a surplus to a deficit. b. The government repeals an investment tax credit. c. The government replaces a consumption tax with an income tax. d. None of the above is correct.
A change in demand means there has been a shift in the demand curve, and a change in quantity demanded
A. Results from a change in price of other goods. B. Means that price has changed and there is movement along the demand curve. C. Means a shortage or surplus will result from holding prices constant. D. Also means demand has shifted.
After the housing bubble burst, consumer confidence plummeted and housing sales dropped to all-time lows. This caused the demand curve for normal goods to shift
a. inwards b. outwards c. stay constant d. none of the above