Which of the following goods is nondiminishable?
A. City street
B. National parks
C. The use of a lighthouse
D. A free concert
Answer: C
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Economists typically assume that the owners of firms wish to
A) produce efficiently. B) maximize sales revenues. C) maximize profits. D) All of the above.
Refer to the information provided in Figure 13.4 below to answer the question(s) that follow. 
Figure 13.4Refer to Figure 13.4. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's profit will be
A. $0. B. $88. C. $154. D. $242.
If the price of ground beef falls, the demand for hamburger buns will
a. increase because the two goods are substitutes b. decrease because the two goods are complements c. decrease because the two goods are substitutes d. increase because the two goods are complements e. not change unless the price of hamburger buns also changes
A competitive environment penalizes the inefficient use of resources. All but one of the following statements addresses why competition is so important for an efficient outcome. Which statement is not true?
a. Competition drives the price closer to the marginal cost of production. b. Consolidation leads to concentration of market power that allows providers to act like monopolists and price their products above marginal cost. c. Competition forces firms to improve efficiency or lose profits. d. More firms competing in a market means more substitutes, so consumers have more options, and their demand is less elastic.