Exhibit 8-11 A firm's cost and marginal revenue curves
In Exhibit 8-11, when the price is $5, the firm:
A. is making an economic profit of $21.
B. should produce output equal to 10.
C. is breaking even.
D. should produce output equal to 7.
Answer: D
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What will be an ideal response?
If tax rates were 100 percent, tax revenues would be _____
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The production possibilities curve bows out because
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