Economists assume that the goal of a firm is to
A) maximize economic profits.
B) sell as many units as possible.
C) maximize gross revenues.
D) be the largest firm in its industry.
Answer: A
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Compared to an economy that uses a medium of exchange, in a barter economy
A) transaction costs are higher. B) transaction costs are lower. C) liquidity costs are higher. D) liquidity costs are lower.
The rise in output of corn and wheat was achieved more by increasing acres farmed than by raising output per acre
Indicate whether the statement is true or false
Exhibit 2-13 Production possibilities curve
In Exhibit 2-13, in terms of efficiency:
A. point A is preferred to point B. B. point A is preferred to point E. C. point A is preferred to point D. D. point B is preferred to point A.
Refer to Figure 13-4. What is the area that represents the total revenue made by the firm?
A) 0P0aQa B) 0P2cQa C) 0P1bQa D) 0P3dQa