A multi-plant firm has three plants and, at its current production levels, the marginal cost of production at each of the three plants is $2.00. If the firm is perfectly competitive and the market price of its product is $5, which of the following is true?
A) The firm should exactly triple output in each of the plants to maximize profit.
B) The firm is not producing the profit-maximizing total output.
C) The firm is producing the profit-maximizing total output.
D) The firm should increase output at each of the plants to maximize profit.
B) The firm is not producing the profit-maximizing total output.
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Which of the following best explains an economic criticism of unregulated monopolists?
a. Monopolists do not try to minimize their costs of production. b. Monopolists produce where marginal revenue is greater than marginal costs. c. Monopolists attempt to produce too many products, and as a result, their prices are high, and consumer's waste time trying to choose between too many options. d. Monopolists restrict output, and as a result, they fail to produce units that are valued more than the marginal cost of producing them.
Looking at a Lorenz curve, the first quintile viwed from the origin records the
a. the income held by the richest 50 percent of population b. the income held by the richest 20 percent of population c. the income held by the poorest 50 percent of population d. the income held by the poorest 20 percent of population e. the wealth held by the poorest 10 percent of population
A flight to quality refers to a move by investors:
A. away from low-quality bonds towards high-quality bonds. B. towards securities of other countries and away from U.S. Treasuries. C. towards precious metals and away from U.S. Treasury bonds. D. away from bonds towards stocks.
The so-called risk-free rate essentially measures the investors':
A. Risk aversion B. Risk preference C. Time preference D. Expected rate of return