The difference between the total revenue and total cost curves at a given output is equal to
A. Average revenue.
B. Average total cost.
C. Either profit or losses depending on the curves relative position.
D. Profit per unit.
Answer: C
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The compensation variation and equivalent variation will be closer to each other when
A) the income elasticity is greater. B) the budget share is greater. C) the price change is smaller. D) the income elasticity is smaller.
The market for a competitive price-taker market clears at a price of $3, and the minimum average cost for all firms is $2.50 . In the long run, we would expect an increase in
a. each firm's output. b. the number of firms. c. each firm's profit. d. each firm's average cost.
The minimum efficient scale in the figure below shows that
A. point A is the minimum efficient scale (MES) for the firm. B. the long-run average cost curve (LAC) reaches a minimum point at B. C. point B is the minimum efficient scale (MES) for the firm. D. the minimum efficient scale (MES) illustrates maximum average costs.
An example of ________ is an internship program.
A. social capital B. infrastructure C. tangible capital D. intangible capital