Total profit
A. is the difference between sales revenue and costs.
B. maximization is always the goal of every firm.
C. is always defined the same by both economists and accountants.
D. is maximized when sales are maximized.
Answer: A
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The unemployment that fluctuates over the business cycle is called
A) frictional unemployment. B) structural unemployment. C) full unemployment. D) cyclical unemployment. E) natural unemployment.
To promote economic efficiency, government should
A. keep all prices as low as possible. B. keep all prices high so that people will save more money. C. allow the market to set low prices for abundant goods and high prices for scarce goods. D. never interfere with firms’ price setting powers.
Based upon the information shown, what is total revenue for Bearclaws, given that it maximizes profits?
A. $1,080. B. $900. C. $490. D. $980
Consumers maximize total utility within their budget constraint by
A) buying the cheapest goods they can find. B) buying whatever they like the best. C) buying the goods with the largest marginal utility per dollar spent. D) spending the same dollar amount for each good.