A firm maximizes profit by operating at the level of output where
A) average revenue equals average cost.
B) average revenue equals average variable cost.
C) total costs are minimized.
D) marginal revenue equals marginal cost.
E) marginal revenue exceeds marginal cost by the greatest amount.
D
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Countries are concerned about small changes in their average annual growth rates in per capita income because
A) growth rates are a factor in U.N. participation. B) the power of compounding means small changes have large effects over time. C) growth rates tend to decline over time. D) the faster a country grows today, the less it will be able to consume in the future.
The futures price
A) reflects traders' expectations of the spot price on the day of delivery. B) is always above the spot price on the day of delivery. C) is always below the spot price on the day of delivery. D) is always equal to the spot price at every point in time.
In the period of 1979 to 1982, if the Fed had set an interest rate target that was equal to the actual market interest rates that occurred, the:
A. target would have been a federal funds rate of zero percent. B. economy would have been better off. C. target would not have been politically acceptable. D. inflation rate would have risen further.
The perfectly competitive firm represented in Figure 9-10 has a short-run supply curve that follows the
a.
marginal cost curve
b.
vertical axis for prices less than $4.00 and follows the marginal cost curve for prices above $4.00
c.
vertical axis for prices less than $2.50 and follows the marginal cost curve for prices above $2.50
d.
vertical axis for prices less than $5.50 and follows the marginal cost curve for prices above $5.50
e.
horizontal axis for quantities less than 50 and follows the marginal cost curve for quantities above 50