If a firm's total economic cost of producing 50,000 products is $5,000,000, and this output is sold for $5,000,000, we can conclude that the firm will earn an economic profit of:
a. $5,000,000
b. $0
c. $10,000,000
d. $50,000
b. $0
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The figure above shows an education market in which the government is providing households with vouchers. What is the dollar value of a voucher in this market?
A) $4,000 B) $8,000 C) $12,000 D) $16,000 E) None of the above answers is correct.
Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $36, the efficient quantity of satellites is
A) 1. B) 2. C) 3. D) 4.
When demand is relatively inelastic, a 5% increase in price will:
a. increase total revenue by more than 5%. b. increase total revenue by less than 5%. c. decrease total revenue by more than 5%. d. decrease total revenue by more than 5%.
Which of the following is typically NOT an argument used for keeping the U.S. trade embargo with Cuba intact?
A) There is not much economic potential from trade given Cuba's small population and low per capita income. B) Removal of the embargo will cause much more Cuban immigration to the United States. C) If the Cuban economy is weakened just a bit more, the Cuban political-economic system cannot be sustained. D) There will be a backlash among countries supplying such commodities as sugar to the United States if the U.S. buys them from Cuba instead.