Economists assume that business firms attempt to maximize their profits.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Use the following supply and demand graph for product X to answer the question below.
What would happen if the government taxed the producers of this product because it has negative externalities in production?
A. price would decrease B. demand would decrease C. supply would decrease D. supply would increase
If the world price of a good is below the no-trade domestic price, a country
A) will benefit from exporting the good. B) will benefit from importing the good. C) cannot benefit from trade. D) has a comparative advantage in the production of that good. E) will not engage in trade for that good.
If there exists a shortage in the market for snowmobiles, then the price of a snowmobile will
A) rise. B) fall. C) neither rise nor fall. D) at first fall then rise.
Refer to the above table. At a price of $450, there is an
A) equilibrium. B) excess quantity supplied of 4,000 tablets. C) excess quantity demanded of 6,000 tablets. D) excess quantity demanded of 9,000 tablets.