Technically speaking, maximizing profit means finding the maximum difference between
a. TR and TC
b. MR and MC
c. price and ATC
d. price and AR
e. ATC and MC
A
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Answer the following statements true (T) or false (F)
1. The study of economics is primarily theoretical and has very little practical application. 2. Economics is considered a physical science. 3. Economies must make choices because resources are limited while wants are unlimited. 4. Production is the creation or addition of utility.
Why is it true that domestic product and national income must be equal?
a. The IRS national accounting system assures that taxes equal total income. b. The total amount of spending must equal total national sales. c. The value of final product must equal the sum of resource income that produced it. d. The total amount of income earned is eventually spent.
Financial crises seldom involve economic downturns
a. True b. False Indicate whether the statement is true or false
Which of the following can eliminate the inefficiency inherent in monopoly pricing?
a. arbitrage b. cost-plus pricing c. price discrimination d. regulations that force monopolies to reduce their levels of output