As long as the marginal revenue curve lies above the horizontal axis,
a. total revenue must exceed total cost
b. the total revenue curve must have a positive slope
c. marginal revenue must exceed marginal cost
d. profit must be rising
e. the firm must be earning a profit
B
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Which of the following demonstrates opportunity cost?
A. With a new strain of wheat, the wheat crop of Canada grows by 20% with no change in the productive resources devoted to wheat farming. B. A tax cut increases people's purchases of consumer goods and decreases state expenditures on education. C. The ravages of World War II reduced Japan's ability to produce goods. D. Flora gets a 10% raise and increases her expenditures on movies.
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were to open to trade, the amount consumed domestically would:
A. decrease by 40. B. increase by 40. C. increase by 35. D. increase by 75.
Given the table below, what is average total cost when 200 units of output are produced? 
A. $4.00 B. $2.30 C. $2.50 D. $4.80 E. none of the above
Adverse selection in employment is more likely when:
A. jobs require specific training. B. everyone is equally qualified for the job. C. people's abilities are easy to measure. D. people's abilities are difficult for potential employers to observe.