Suppose that in a perfectly competitive market, the market price is $10. A firm in that market has marginal cost of $10, average total cost of $12, and it is producing 100 units. The firm is
A. earning zero total economic profits and is not maximizing economic profits.
B. incurring $200 in total economic losses and is minimizing economic losses.
C. earning $1,000 in total economic profits and is maximizing economic profits.
D. earning $200 in total economic profits and is maximizing economic profits.
Answer: B
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If the demand curve reflects consumers' full willingness to pay, and the supply curve reflects all costs of production, then which of the following is true?
What will be an ideal response?
The conclusion of the median voter model is that_____
a. private sector demands of the median voter influences their demand for public goods b. the median voter is omniscient c. public sector demand will be the demand of the median voter d. decision-making costs will be high if the median voter is rationally ignorant
Which of the following is a game of perfect information?
A. Chess B. Poker C. Rock-Paper-Scissors D. Both chess and poker are games of perfect information.
A production possibilities frontier shifts outward when
a. the economy experiences economic growth. b. the desires of the economy's citizens change. c. at least one of the basic principles of economics is violated. d. opportunity costs are lessened.