Consider a firm with the following cost and revenue information: ATC = $8, AVC = $7, and MR = MC = $6. If the firm produces Q = 60 in the short run, it:
A. is minimizing losses.
B. makes a total loss of $60.
C. should produce more output.
D. should shut down.
Answer: D
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Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. CalculatorsPer HourComputersPer HourSmith10010Jones1206Suppose Smith and Jones begin by producing 0 computers and 220 calculators per hour. If they wish to produce 2 computers and 200 calculators per hour efficiently, then Smith should spend ________, and Jones should spend ________.
A. 48 minutes on computers and 12 minutes on calculators; 1 hour on calculators B. 12 minutes on computers and 48 minutes on calculators; 1 hour on calculators C. 30 minutes on each; 30 minutes on each D. 1 hour on calculators; 10 minutes on computers and 50 minutes on calculators
Which of the following applies to an object serving as a store of value?
I. If an object can be held and exchanged later for a good or service, it serves as a store of value. II. The less stable an object's value, the better it serves as a store of value. III. A work of art can serve as a store of value. A) I only B) I and II C) I and III D) I, II and III
In the U.S., the Revolutionary War (1775-1781) was immediately followed by an increase in:
a. trade. b. inflation. c. real per capita income. d. slave imports.
Because there are many brands of similarly tasting light beers, the elasticity of demand for any one of them is likely to be
A. zero. B. higher than that of light beer itself. C. infinity. D. less than that of light beer itself.