In monopolistic competition, profit is maximized when the amount produced is such that
A) marginal revenue equals marginal cost.
B) marginal revenue is greater than marginal cost.
C) total revenue equals total cost.
D) total revenue is maximized.
A
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Standard game theory predicts a solution to the ultimatum game that is rarely observed when people actually play the game
The key reason that behavioral economists believe the predicted and observed outcomes differ is because people account for ________ of the outcome when making decisions. A) loss aversion B) fairness C) efficiency D) utility
A Detroit business advertises, "The more we sell, the lower the price, and the lower the price, the more we sell." This firm is experiencing
a. decreasing returns to scale. b. constant returns to scale. c. increasing returns to scale. d. abnormal demand patterns.
Susan quit her job as a teacher, which paid her $36,000 per year, in order to start her own catering business. She spent $12,000 of her savings, which had been earning 10 percent interest per year, on equipment for her business. She also borrowed $12,000 from her bank at 10 percent interest, which she also spent on equipment. For the past several months she has spent $1,000 per month on
ingredients and other variable costs. Also for the past several months she has earned $4,500 in monthly revenue. In the short run, Susan should a. shut down her business, and in the long run she should exit the industry. b. continue to operate her business, but in the long run she should exit the industry. c. continue to operate her business, but in the long run she will probably face competition from newly entering firms. d. continue to operate her business, and she is also in long-run equilibrium.
Which of the following would be considered human capital?
a. the financial capital a person earns over a lifetime of investing b. the machinery a worker uses to produce a product c. the training a worker receives when starting a new job d. the break room in a factory where employees go to have coffee