If at its current production level, a perfectly competitive firm's marginal revenue and long-run marginal cost are equal to $1.50 and its long-run average cost is $1.65, which of the following statements is true?
A) The firm should expect the market price of its product to increase.
B) The firm should expect to earn positive economic profit indefinitely.
C) The firm should expect the market price of its product to fall.
D) The firm should expect the market supply curve to increase.
A) The firm should expect the market price of its product to increase.
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In the figure above, if the market is at equilibrium, the sum of the total consumer surplus and the total producer surplus is
A) $240. B) $600. C) $1,000. D) $0. E) $60.
Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total Tons Per DayNumber of MinersMother Lode10025Scraping Bottom3010Middle Drift7515 Suppose Earth Movers & Shakers needs to fill an order for 60 tons of ore in a single day. If it has no other orders for that day, it should:
A. take it all from Mother Lode. B. take it all from Middle Drift. C. take 20 tons from each of the three mines. D. take 30 tons from Scraping Bottom and 30 tons from Middle Drift.
The two main tools of macroeconomic policy include monetary policy, and fiscal policy, which involves __________ spending.
A. business B. government C. household D. capital market
Which component(s) of U.S. real GDP decreased in size relative to total U.S. real GDP from 1950 to 2000?
A. Only services. B. Only agriculture. C. Agriculture and manufacturing. D. Only manufacturing.