All profit-maximizing firms chose the level of output at which:
A. MR < P
B. P = MC
C. MR = P
D. MR = MC
Answer: D
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Initially, the economy is at point B on Figure 10-1 above. According to the Solow model of growth, in the short run, the discovery of a cold fusion process which reduces the cost of energy by 50%, ceteris paribus, will shift the economy from ________
. A) B to H, increasing per capita output without increasing capital per capita B) B to C, increasing per capita output with increasing capital per capita C) B to C, increasing per capita output without increasing savings D) B to I, increasing output, saving and capital per capita
A society is productive inefficient when
A) it produces at a point inside (below) its PPF. B) it does not produce the maximum output with its given resources and technology. C) it can produce more of one good without giving up some of another good. D) both a and b E) all of the above
Which of the following government policies is least likely to increase the standard of living in the United States?
a. Investment in education and skills training for workers b. Raising the minimum wage paid to workers c. Investment in technology d. Investment in tools and capital for workers
If a firm's total costs are $100 when 10 units of output are produced and $103 when 11 units of output are produced, the marginal cost of the 11th unit is
A. $1. B. $3. C. $5. D. $9.36.