Economists generally assume that
a. firms act to maximize the dividends paid to stockholders
b. households act to maximize their wealth
c. households act to maximize utility
d. firms act to maximize revenue
e. both households and firms act to minimize expenditures
C
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Corrina just graduated from college, is unemployed, and looking for her first real job. This is an example of
A) frictional unemployment. B) structural unemployment. C) seasonal unemployment. D) cyclical unemployment.
If a perfectly competitive firm sells 50 units of output at a market price of $10 per unit, its marginal revenue is:
a. more than $10. b. less than $10. c. $10. d. $5300.
The government proposes a tax on flowers in order to boost its revenue. If the elasticity of demand is 1.3 and the elasticity of supply is 0.7: a. Consumers will bear the majority of the burden of the tax
b. Producers will bear the majority of the burden of the tax. c. Consumers and producers will bear equal shares of the burden of the tax. d. It does not tell us enough to reveal whether consumers or producers will bear most of the burden of the tax.
Refer to the given table. Relative to column C, column D represents:Price Per UnitColumn A Units Per YearColumn B Units Per Year$205040$306050$407060$508070$609080
A. a decrease in supply. B. a decrease in demand. C. an increase in demand. D. an increase in supply.