Profit can be maximized only where marginal revenue equals
A. average cost.
B. total cost.
C. marginal cost.
D. average cost.
Answer: C
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An argument in favor of 100 percent reserve banking is that
A) a bank deposit is owned by the depositor, so the bank has no legal right to lend the deposit to someone else. B) banks should be allowed to lend deposits in order to increase their profits and strengthen the banking system. C) unregulated institutions would be riskier than regulated fractional-reserve banks. D) it would limit the precision of the central bank's control over the quantity of money.
A group of musicians performing at a concert for charity in New York is an example of a cluster in economics
a. True b. False Indicate whether the statement is true or false
The Economic Development Minister of a country has a list of things she thinks may explain her country's low growth of real GDP per person relative to other countries. She asks you to pick the one you think most likely explains her country's low growth. Which of the following contributes to low growth?
a. poorly enforced property rights b. outward-oriented trade policies c. policies that permit foreign investment d. All of the above are correct.
Which of the following is not true of a monopolistically competitive firm?
A. The firm will maximize profits by producing where MR = MC. B. The firm will not likely earn an economic profit in the long run. C. The firm will shut down if price is less than average variable cost. D. The firm will produce an efficient quantity where average total cost is minimized.