Profit (or loss) per unit at the profit maximizing (or loss minimizing) level of output
A. is MN.
B. is LM.
C. is LN.
D. cannot be found on this graph.
A. is MN.
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Refer to the Article Summary. Assuming the findings are correct and all else equal, higher increases in home values which result from close proximity to a Trader Joe's are an example of a ________ due to the location of the Trader Joe's
A) social cost B) private cost C) positive externality D) negative externality
If a government-imposed price ceiling causes the observed price in a market to be below the equilibrium price,
A) there will be excess demand. B) there will be excess supply. C) the curves will shift to make a new equilibrium at the regulated price. D) None of the above.
What is the benefit of understanding the income and the substitution effects?
A) The income effect might run in the opposite direction of the substitution effect. B) The income effect always runs in the opposite direction of the substitution effect. C) The income and substitution effects just offset each other, which explains a lot. D) The income and substitution effects are proportional to each other.
Which of the following is the so-called efficiency factor of economic growth?
A. Having an efficient financial system B. Reaching full production potential C. Having free trade D. Enhanced quantity and quality of human resources