When price is greater than both marginal cost and average variable cost, the perfectly competitive firm
A. should increase its level of output.
B. is maximizing economic profit.
C. should reduce its level of output.
D. should stop production.
Answer: A
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Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q219g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />If the first store to open in Miniville is located at A, to maximize the number of customers it attracts, the next store to open should locate:
A. at C.
B. just west of A.
C. at B.
D. just east of A.
The GATT was
a. formed shortly after World War II b. authorized in the American Constitution c. formed in 1994 d. formed in 1876 e. formed to unify the European continent
Human capital contributes to growth because it helps workers in the economy:
A. be more productive with their time. B. work smarter. C. produce more with the same amount of physical capital. D. All of these are true.
Related to the Economics in Practice on p. 512: In Santa Cruz, the red feathers of the Scarlet Honeyeater bird were used as currency. Using feathers to make a purchase would be using the feathers as a(n)
A. legal tender. B. store of value. C. unit of account. D. medium of exchange.