If substantial economies of scale exist, setting price = MC will
a. result in a loss for the firm
b. result in an excess profit earned
c. yield a normal profit
d. cause the firm to produce more than the optimal number of goods
e. cause the firm to charge lower than the optimal price
A
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Planned economies
a. can increase production rapidly but are likely to be inefficient b. can produce efficiently but can't guarantee consumers' needs are met c. can produce efficiently, but only at low levels of output d. can provide for all society's needs, but are likely to be inefficient e. none of the above
Table 13.1XYZ Bank Balance SheetAssetsLiabilitiesTotal reserves$100,000Transactions accounts$400,000Loans300,000??Refer to Table 13.1. If XYZ Bank has a required reserve ratio of 10 percent and loan proceeds are not redeposited, it can legally increase its loans by
A. $10,000. B. $60,000. C. $40,000. D. $20,000.
Which of the following practices are, at least in part, attempts to reduce moral hazard problems?
a. The income of waiters and waitresses depends heavily on tips. b. An employer pays below equilibrium wages because he thinks his employees are not working as hard as they could be. c. The professors leaves the room to prevent cheating on exams. d. Tenure professors are not supervised closely.
A low-income household is usually who?
a. one person living alone b. a family headed by a single parent c. a family headed by a young single female, poorly educated and not working d. all of the above represent most low income households