Refer to Figure 13-10. to answer the following questions
a. What is the profit-maximizing output level?
b. What is the profit-maximizing price?
c. At the profit-maximizing output level, how much profit will be realized?
d. Does this graph most likely represent the long run or the short run? Why?
a. The profit-maximizing output level is 22.
b. The profit maximizing price is $16.
c. The profit is $88.
d. Since the firm is making a profit, this most likely represents the short run.
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Labor costs $20 per worker and capital costs $100 per unit. Then, according to the above table, which of the following options for pizza production is economically efficient?
A) Option 1 B) Option 3 C) Option 4 D) Both options 1 and 3 are economically efficient.
Opportunity cost can best be defined as the
A. value of what must be given up in order to acquire an item. B. money cost to the buyer to acquire a good or service. C. total value of all the other items that otherwise could be acquired. D. cost to the seller to produce an item. E. time cost to obtain the money to buy an item.
The consumption function shows how much
A. households plan to consume per year at each level of savings. B. real disposable income people will earn at each income tax bracket. C. households plan to consume per year at each level of real disposable income. D. households plan to consume per year at each possible interest rate.
A study by Edward Prescott found that the ________ marginal tax rates in the United States relative to Europe resulted in a ________ quantity of labor supplied in the United States
A) higher; larger B) lower; larger C) higher; smaller D) lower; smaller