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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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.
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.
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.
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