Assume that Spain will either specialize in producing cars or TVs. What is their opportunity cost of producing 8 TVs?
1 car
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Refer to Figure 12-5. If the market price is $20, what is the average profit at the profit-maximizing quantity?
A) $5 B) $6 C) $9 D) $20
"Non-market-clearing" approaches to macroeconomics include
A) the original Keynesian model, but not the New Keynesian model. B) the New Keynesian model, but not the original Keynesian model. C) the original and New Keynesian models. D) neither the original nor the new Keynesian models.
When firms differentiate their products, they
a. provide information to consumers with no additional use of productive resources b. always increase their profits c. always create real differences among products d. frequently create artificial or superficial differences among products, thus raising production costs e. usually strain the physical capacity of their plants
The idea that consumers continue to adjust their purchases until the marginal utility per last dollar spent on all items is equal is called the
A) law of increasing costs. B) law of diminishing marginal utility. C) rule of 72. D) consumer optimum.