A common mistake made by consumers is the failure to take into account the sunk costs of their actions
Indicate whether the statement is true or false
TRUE
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Negative marginal revenue means that
a. the firm is maximizing its economic profit b. the firm is maximizing its total revenue c. total revenue is increasing at an increasing rate as output increases d. total revenue is increasing at a decreasing rate as output increases e. total revenue is decreasing as output increases
A firm can signal the high quality of its product by
a. spending nothing on advertising to convey that the product is so good that the firm does not even need to advertise. b. spending a large amount of money on advertising. c. getting a patent for the product. d. not worrying about getting a patent for the product.
What does the PPI measure?
A) the average change in the prices paid for all goods produced in the economy over a given year B) the average of the prices received by producers of goods and services at all stages of the production process C) the level of production of goods and services generated in the economy in a given year D) the difference between the prices consumers pay for goods and services and the prices producers pay for goods and services
Refer to Figure 34.4. If an individual does not work, she or he will receive welfare benefits of
A. $12,500. B. $0. C. $5,000. D. $7,500.