Refer to Figure 8.1. At the profit-maximizing level of output, total revenue is
A) $1200.
B) $2160.
C) $2400.
D) $2680.
E) $3160.
D
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Which of the following best describes a command economy?
A) An economy that is characterized by barter trade of goods and services B) An economy where strong controls are imposed by the ruling authority C) An economy in which resources are allocated through the price mechanism. D) An economy in which there are a few privately owned firms
If aggregate demand in the U.S. had grown more slowly than it actually did in 2010, the
a. unemployment rate would have been even lower. b. inflation rate would have been even lower. c. unemployment rate would have been the same. d. economy would have grown faster.
In 1960 the per capita GDP of Hong Kong was substantially less than that of Argentina and Venezuela. By 2005, the per capita income of Hong Kong was more than three times the figures for Venezuela and Argentina. This dramatic change occurred because
a. Venezuela and Argentina lacked the natural resources of Hong Kong. b. the United States provided aid to Hong Kong but not to Argentina and Venezuela. c. Hong Kong was able to achieve and sustain a high rate of economic growth while the growth rates of Argentina and Venezuela were exceedingly low. d. Hong Kong was a developed country in 1960, but Argentina and Venezuela were not.
Suppose the marginal revenue curve for a perfectly competitive firm intersects the average total cost curve at its minimum point. As the marginal revenue curve moves upward from that point along the marginal cost curve,
A. the profit-maximizing quantity decreases. B. the profit-maximizing quantity increases. C. the firm will choose not to produce to minimize its loss. D. the average fixed cost curve will shift upward.