If a firm is producing where MR > MC
A. the firm is already maximizing profits because revenue is being increased by more than costs.
B. the revenue gained by producing one more unit of output equals the cost incurred by doing so.
C. the revenue gained by producing one more unit of output is less than the cost incurred by doing so.
D. the revenue gained by producing one more unit of output exceeds the cost incurred by doing so.
Answer: D
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The cost-benefit analysis on the financial impact smokers have on society conducted by Vanderbilt professor Kip Viscusi concludes that
A) smokers provide a net public service to society. B) smokers are a financial drain on society. C) smokers contribute less to retirement and pension programs than they receive from those programs. D) smokers account for about 32 cents of net cost to everyone else in society for every pack of cigarettes smoked.
In a perfectly competitive market, there are ________ buyers and ________ sellers
A) many; many B) many; few C) few; many D) few; few
There are two conditions necessary for a consumer to maximize her utility. One is that the marginal utilities per dollar spent on each good and service consumed are equal. What is the other condition?
A) The prices of each good and service consumed must not be too high. B) Total spending on all goods and services must equal the amount available to be spent. C) The consumer must be satisfied with the choices she makes. D) The total spent on each good and service is the same.
Goods that are excludable include both
a. club goods and public goods. b. public goods and common resources. c. common resources and private goods. d. private goods and club goods.