A perfectly competitive firm produces in a market where the prevailing price is $25 . At its current output level of 10,000 units, its average total cost equals $15 . The firm is earning
a. a total money profit of $100,000
b. a total economic profit of $100,000
c. a total money profit of $250,000
d. a total economic profit of $250,000
e. both a total money profit and a total economic profit of $100,000
B
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Taxes that change with the level of real GDP and income are called
A) flexible taxes. B) voluntary taxes. C) induced taxes. D) forced taxes. E) GDP taxes.
The demand curve for the output of a perfectly competitive firm is
a. perfectly inelastic. b. perfectly elastic. c. a rectangular hyperbola with an elasticity equal to 1. d. identical in shape to the market demand curve.
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. How many transactions must the market maker make if he wants to maximize his profits?
a. 1 b. 2 c. 3 d. 4
Production Possibility Schedules for Two South Pacific Island NationsKiribatiTuvaluMangoesCoconutsMangoesCoconuts30001,20002004008001,2001008004002,40001,20003,600A comparative advantage in the production of coconuts is held by:
A. neither country. B. both countries. C. Tuvalu. D. Kiribati.