At a perfectly competitive firm’s profit-maximizing level of output, its total revenue is $200 and its short-run variable cost is $225. The firm
A. has a loss of $25.
B. should shut down.
C. should increase output to reduce losses.
D. should raise the price of its product.
Answer: B
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What goods are available to all without direct payment?
A. private goods B. public goods C. common goods D. toll goods
To appreciate the U.S. dollar against the Mexican peso, in the foreign exchange market the Fed could ________ dollars and ________ pesos
A) buy; buy B) sell; sell C) sell; buy D) buy; sell E) None of the above answers is correct because the Fed cannot affect the U.S. exchange rate.
The Court will block proposed horizontal and vertical mergers when
a. there are many firms in the market b. economies of scale exist c. junk bonds are involved d. the stock market is doing poorly e. high market concentration already exists
George always purchases the soda with the lowest price. For George, the cross price elasticity of demand for two brands of soda will be
A. equal to 0. B. negative. C. positive. D. impossible to determine without more information.