The amount of revenue a firm receives for the sale of its products minus its costs of production as measured by its accountants is the firm's
a. earnings.
b. retained earnings.
c. economic, or real, profit.
d. dividend.
a
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In marginal cost pricing, the natural monopoly would have to set price equal to
A) AFC. B) AVC. C) ATC. D) MC.
The U.S. government will probably return soon to a system of paper money backed by gold
a. True b. False Indicate whether the statement is true or false
If labor in Mexico is less productive than labor in the United States in all areas of production,
a. then neither nation can benefit from trade. b. then Mexico can benefit from trade but the United States cannot. c. then the United States will have a comparative advantage relative to Mexico in the production of all goods. d. then both Mexico and the United States still can benefit from trade.
The socially efficient level of output is determined where:
A. marginal social cost equals marginal social benefit. B. marginal private cost equals marginal social benefit. C. average social cost equals average social benefit. D. average private cost equals average social benefit.