Suppose a firm lowers its price in order to increase sales. The lower price will reduce the revenue the firm earns on the:
A. marginal units.
B. infra marginal units.
C. surplus units.
D. incremental units.
B. infra marginal units.
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In a graph of a typical firm's AFC, ATC, and AVC curves, the
A) AVC curve lies above the ATC curve. B) ATC curve lies below the AFC curve. C) distance between the ATC curve and the AVC curve equals the AFC. D) distance between the AVC curve and the AFC curve equals the ATC. E) AVC curve crosses the MC curve at the point where the MC is at its minimum.
The above figure shows the demand and cost curves for a firm in monopolistic competition. In the figure, the firm makes an economic profit of
A) $0. B) $20. C) $40. D) $120.
The consumer price index measures the prices of:
What will be an ideal response?
Which one of the following twentieth-century nations eliminated the problem of scarcity?
A) Socialist Cuba B) Socialist China C) Fascist Italy D) The United States of America E) None of the above.