The basic difference between a public bureau and a market firm is that the bureau
a. has an incentive to maximize profits
b. has no incentive to minimize costs
c. managers do not attempt to maximize their self interest
d. managers are more likely to be concerned with the public interest than their own self interest
e. faces a budget constraint placed up it by the voters
B
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If the supply schedule for a product has an upward slope and the price of that product declines from $100 to $75, the:
a. Quantity supplied of the product will increase b. Quantity supplied of the product will decline c. Supply of the product will shift to the right d. Supply of the product will shift to the left
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
Suppose Jason owns a small pastry shop. Jason wants to maximize his profit, and thinking back to the microeconomics class he took in college, he decides he needs to produce a quantity of pastries which will minimize his average total cost. Will Jason's
strategy necessarily maximize profits for his pastry shop? A) Yes; Since Jason's pastry shop is in a perfectly competitive market, the only way to maximize profit is to produce the quantity where average total cost is minimized. B) Not necessarily; This strategy will only maximize Jason's profit in the long run, but not in the short run. C) No; In order to maximize profit, Jason would never want to produce the quantity where average total cost is minimized. D) Not necessarily; Depending on demand, Jason may maximize profit by producing a quantity other than that where average total cost is at a minimum.
What are the benefits and costs to Indian citizens of allowing Indian companies to copy and sell patent-protected drugs developed by U.S. companies?
What will be an ideal response?