A perfectly competitive firm maximizes profits by producing at the point where
A. the distance between price and average total cost is the greatest.
B. the distance between price and marginal cost is the greatest.
C. price equals marginal cost.
D. price equals average total cost.
C. price equals marginal cost.
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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for frozen yogurt. Which panel describes what happens in the market for frozen yogurt when the price of ice cream, a substitute product, increases?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
The selling prices of goods and services in the open market is called the _______ value.
a. exchange b. sale c. money d. risk e. none of the above
What impact do private insurance companies and Medicare have on national medical costs?
A) Medical costs go up because insurance leads to an increase in the quantity demanded of medical services. B) Medical costs go up because insurance will lead to the reduction in the supply of medical services due to the amount of paperwork required. C) Medical cost are unaffected by insurance companies. D) Medical costs go down because the insurance company pays the bill.
Which of the following transactions would be included in GDP for 2015?
a. On January 5, 2015, Chris Carter sold 100 shares of stock in IBM Corporation. b. Bonita Delgado purchases a new 2015 Chevrolet on March 10, 2015. c. Nadav Daniel buys a used desk from the "Struggling Students Used Furniture" store on May 9, 2015. d. Levi Lathan purchases a 75-year-old penthouse on Lake Shore Drive in Chicago, Illinois, on June 23, 2015.