Profits are maximized when
A) price equals marginal revenue.
B) marginal revenue equals average total costs.
C) marginal revenue equals marginal cost.
D) when price equals average total costs.
C
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If a legal ceiling price causes the quantity of a good demanded to be greater than the quantity supplied
A) competition among both buyers and sellers is prevented. B) competition among buyers is prevented. C) competition among sellers is prevented. D) competition among buyers will raise the nonmonetary costs of obtaining the good.
In the above figure, the short-run macroeconomic equilibrium is at the price level ________ and the real GDP level ________
A) 110; $16.5 trillion B) 120; $16 trillion C) 100; $16 trillion D) 110; $16 trillion
Suppose an economy’s real GDP is $700 billion in year 1 and $718 billion in year 2. What is the growth rate of its GDP?
Please provide the best answer for the statement.
If a nation imposes tariffs and quotas on foreign products, the immediate effect will be to:
A. reduce the rate of domestic inflation. B. increase efficiency in the world economy. C. increase domestic output and employment. D. reduce domestic output and employment.