A firm should continue producing until
A) the cost of producing the output equals the revenues obtainable from selling the output.
B) the cost of increasing output by one more unit equals the revenues obtainable from selling the extra unit.
C) average costs are at a minimum.
D) the average cost when another unit is produced equals the average revenue obtainable from selling the extra unit.
B
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A British investor buys $40,000 worth of stocks in the U.S. stock market. For the U.S. we would predict ________.
A. the balance of trade will increase B. the balance of trade will decrease C. the effect on the balance of trade will depend on how the capital account changes D. the balance of trade will not change
Within neoclassical growth theory, technological change ________ saving and ________ investment
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Suppose the government has declared beer to be an illegal substance and has imposed equal penalties on any person caught buying a beer and on any person caught selling a beer
Using the above figure, in which CBL is the cost of breaking the law, what is the equilibrium price and quantity with this new law in effect? A) $5 per quart and 300 quarts of beer B) $3 per quart and 500 quarts of beer C) $3 per quart and 100 quarts of beer D) $1 per quart and 300 quarts of beer
Daniel enjoys both soda and pizza, allocating his purchases across these two goods so that his utility is maximized. If Daniel receives one-third as much utility from the last can of soda as from the last slice of pizza, we can say that:
a. the price of pizza is one-third that of soda. b. the price of pizza is equal to that of soda c. the price of pizza is twice that of soda. d. the price of pizza is three times that of soda.