Use the following cost table to answer the next question.OutputAverage Variable CostAverage Total CostMarginal Cost0---2$2.50$27.50$2.542.0014.501.562.0010.332.082.138.382.5102.307.303.0122.506.673.5143.006.576.0164.007.1311.0The table shows cost data for a perfectly competitive firm. If the market price for the firm's product is $6, what output level will the firm produce to maximize profits?
A. 16
B. 12
C. 0
D. 14
Answer: D
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Complete this statement. Sellers compete against other sellers and
A) sellers compete against buyers. B) sellers cooperate with buyers. C) buyers cooperate with other buyers. D) both A and C are true.
One In the News article titled "Unemployment Spreading Fast Across U.S. Industries" states that in the next few months the rate of unemployment may rise as high as
A. 6 percent. B. 5 percent. C. 8 percent. D. 7 percent.
An act of production, as economists use the term, is demonstrated by which of the following?
A. An individual buys municipal bonds to avoid taxes. B. A local nonprofessional theater company performs a play. C. A firm buys a pre-existing building in order to expand its operations. D. A worker places money in a pension fund.