You are an analyst with a perfectly competitive firm that makes DRAM memory chips. You must manufacture the chips before you know what the demand will be. If demand turns out to be high, then producing where E[MR] = MC rather than where MRH = MC lowers your profit by an amount equal to ________.
A) area A
B) area A plus the trapazoidal area marked by E and E
C) the trapezoidal area marked by E and E
D) area B + area C
A) area A
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________ uses the concept of marginal analysis to determine the optimum choice
A) Optimization in margins B) Optimization in levels C) Optimization in markets D) Optimization in differences
Competition among sellers generates
A) allocative efficiency. B) productive efficiency. C) equity. D) scarcity.
A majority of people in the United States have private health insurance
Indicate whether the statement is true or false
Which of the following is not an example of a transfer payment?
A) health insurance payments to an army private B) social security payments to disabled persons C) unemployment insurance payments D) social security payments to retirees