A profit-maximizing firm will continue to expand output:
A. as long as the revenues from the production and sale of an additional unit exceeds the average cost of the unit.
B. until the average cost of producing the good or service is at a minimum.
C. as long as the revenues from the production and sale of an additional unit exceeds the marginal cost of the unit.
D. until the marginal cost of producing a good or service is at a minimum.
Answer: C
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A good provides __________ and a bad provides __________
A) utility; satisfaction B) disutility; utility C) dissatisfaction; satisfaction D) utility; disutility E) satisfaction; utility
Figure 4.5 illustrates a set of supply and demand curves for hamburgers. A decrease in supply and a decrease in quantity demanded are represented by a movement from:
A. point a to point d. B. point c to point d. C. point c to point a. D. point b to point c.
Which of the following would be expected if the tariff on foreign-produced shoes were decreased?
A. The domestic price of shoes would fall. B. The supply of foreign shoes to the domestic market would decline, causing shoe prices to rise. C. The number of unemployed workers in the domestic shoe industry would decline. D. The demand for foreign-produced shoes would decrease, causing the price of shoes to increase in other nations.
The long-run supply curve is upward sloping in a constant-cost industry.
Answer the following statement true (T) or false (F)