Consider a firm with the following cost and revenue information: ATC = $8, AVC = $7, and MR = MC = $6 . If the firm produces Q = 60 in the short run, it
a. is minimizing losses
b. makes a total loss of $60
c. should produce more output
d. is making a mistake and should shut down
e. is maximizing total profit
D
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Refer to the payoff matrix below. Which is the equilibrium of the game using the Pareto criterion?
Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies.
A) Camp with Us Offer Financing and Happy Campers Do Not Offer Financing
B) Camp with Us Offer Financing and Happy Campers Offer Financing
C) Camp with Us Do Not Offer Financing and Happy Campers Do Not Offer Financing
D) Camp with Us Do Not Offer Financing and Happy Campers Offer Financing
In the classical model, the loanable funds market will clear when saving
a. equals investment plus government purchases minus net taxes b. equals net taxes c. equals investment d. equals investment plus government purchases e. minus taxes equals investment plus government purchases
An increase in the price of electricity, ceteris paribus, indicates that
A. inflation is increasing. B. electricity is relatively more scarce than it was before. C. the purchasing power of money is decreasing. D. the purchasing power of money is increasing.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.