Which of the following is true about the output level where marginal revenue equals marginal cost?
A. The firm is maximizing profit.
B. The firm should increase its output.
C. The firm should reduce its output.
D. Economic profits are equal to zero.
Answer: A
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Refer to the figure above. Domestic producers gain ________ because of the tariff
A) $5 B) $62,500 C) $15 D) $125,000
In the above figure, at output levels between 5 units and 13 units
A) the firm's accounting profits are negative. B) total revenue equals total costs. C) the firm's economic profits are positive. D) the firm is breaking even.
GDP uses the market value of goods and services because it:
A. provides a common valuation that allows us to compare one economy to another. B. provides the opportunity to compare lists of outputs to see who produced more. C. is the only data that can be gathered about goods and services. D. markets are the only way to value goods and services.
In 2006 Disney had
A) a positive economic profit. B) accounting profits greater than the cost of capital. C) a negative economic profit. D) none of these choices.