Deadweight loss:
A. occurs when the market price is set below the equilibrium price.
B. is the loss of total surplus that results when the quantity of a good that is bought and sold is below the market equilibrium quantity.
C. occurs when the market price is set above the equilibrium price.
D. All of these are true.
Answer: D
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Firms maximize profit when
A) the additional benefit from producing a good equals the additional cost of producing that good. B) MR = MC. C) the derivative of the profit function with respect to output is zero. D) All of the above.
Financial risk is associated with changes in
A) the demand for a firm's products. B) a firm's debt. C) a firm's labor costs. D) government regulations of a firm's activities.
If the dollar price of the English pound goes from $1.50 to $1.75, the dollar has
What will be an ideal response?
If two products satisfy a consumer equally, the consumer will choose the product
a. with the lower marginal utility b. with the higher marginal utility c. with the lower price d. with the higher price