Profits will be maximized when the slope of the total revenue curve and the slope of the total cost curve are equal.
Answer the following statement true (T) or false (F)
True
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Use the following graph of the market for milk to answer the question below.
The marginal cost for the 27th million gallon of milk is
A. $1.00. B. $2.00. C. $1.50. D. dependent on the marginal benefit.
The deadweight loss from a tax
a. does not vary in amount when the price elasticity of demand changes. b. does not vary in amount when the amount of the tax per unit changes. c. is larger, the larger is the amount of the tax per unit. d. is smaller, the larger is the amount of the tax per unit.
If the stock of money is $60 billion, velocity is 5, and real output is $100 billion, what is the price level?
A. 0.12 B. 1.4 C. 3 D. 6
A firm's long-run average cost curve is increasing as output increases over all levels of output. As a result
A. small firms and large firms will have identical average costs. B. small firms would have higher average costs of production than large firms. C. there should be only one firm in the industry. D. there should be more than one firm in the industry.