Figure 9.3Figure 9.3 shows the cost structure of a firm in a perfectly competitive market. If the market price is $3 and the firm produces the output where MR = MC, its profit is:
A. -$300.
B. -$600.
C. -$900.
D. -$1,200.
Answer: D
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Opportunity cost can best be defined as the
a. money cost of a good or service. b. money cost plus interest on money borrowed to buy a good or service. c. cost of the resources used to produce a good or service. d. value of the best alternative forgone when the alternative at hand is chosen.
Rent control is a price _____.
Fill in the blank(s) with the appropriate word(s).
Assume that the government proposes a negative income tax that calculates the taxes owed as follows: Taxes Owed = (1/3 Income) - 10,000 . If a family doesn't earn any income, how does the negative income tax affect it?
a. It will receive an income subsidy of $1,000. b. It will receive an income subsidy of $3,000. c. It will receive an income subsidy of $10,000. d. It will not be affected at all, since the negative income tax requires a family to earn income.
According to the graph shown, the equilibrium price is:
A. $5 B. $15 C. $20 D. $10