To maximize profit, a perfectly competitive firm that decides not to shut down will choose the rate of output at which
a. price is highest
b. price minus average total cost is maximized
c. price equals marginal cost
d. total revenue is maximized
e. average total cost is minimized
C
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How many dollars would it cost to buy an Edinburgh Woolen Mill sweater costing 50 British pounds if the exchange rate is 1.25 dollars per one British pound?
A) 50 dollars B) 60 dollars C) 70 dollars D) 62.5 dollars E) 40 British pounds
It's easy for a private firm to provide a public good because of free riders
a. True b. False Indicate whether the statement is true or false
A college graduate earns nearly _____________ a person with just a high school diploma.
A. one-third more than B. half again as much C. two-thirds more than D. twice as much
If the Federal Reserve uses open-market operations to lower the interest rates on short-term U.S. government bonds, then as a consequence asset prices:
A. Increase, and the average expected rate of return on assets decreases B. Decrease, and the average expected rate of return on assets increases C. Increase, and the average expected rate of return on assets increases D. Decrease, and the average expected rate of return on assets decreases