Refer to the table below. If the cost per unit of advertising is constant at $475, what is the level of advertising per week that maximizes the industry joint profit?
Suppose the egg industry is made up of only the three farms above; Happy Chickens, Special Chickens, and Superior Chickens.
A) 1
B) 2
C) 3
D) 4
C) 3
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Which of the following is the most likely reason for countries to engage in international trade based upon specialization of production?
A. Relative exchange rates B. Relative levels of GDP C. Relative inflation rates D. Comparative advantage
Which of the following statements about tariffs is true?
A. The revenue gained from tariffs equals the total cost that tariffs impose on consumers. B. The costs of tariffs are proportionately higher for high-income groups than for low-income groups. C. U.S. consumers lose more from tariffs than U.S. producers gain. D. U.S. producers gain more from tariffs than U.S. consumers lose.
Which of the following is an accurate statement about the aggregate supply curve?
a. It is flat when prices are inflexible. b. It is flat when unemployment is low. c. It is steep when the economy is at excess capacity. d. It is steep when the marginal cost rises little as output increases.
Which of the following statements regarding accounting and economic profits is FALSE?
A) Economic profits can be zero even if accounting profits are positive. B) Economic profits = total revenue - (explicit + implicit costs) C) Accounting profits can be negative if economic profits are positive. D) Accounting profits = total revenue - explicit costs