Maximizing profits per unit always leads to the maximization of total profit.
Answer the following statement true (T) or false (F)
False
Profit is maximized at the output level where MR is equal to MC, not necessarily at the minimum ATC where profit per unit is maximized.
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Production efficiency means that
A) scarcity is no longer a problem. B) producing more of one good is possible only if the production of some other good is decreased. C) as few resources as possible are being used in production. D) producing another unit of the good has no opportunity cost.
Which of the following sets of outcomes is exhaustive?
A) win, lose, tie B) employed full-time, employed part-time, unemployed C) married, single, widowed D) All of the above.
Which of the following statements best expresses why economic efficiency should be society's first goal?
A. Since the consensus on what is a fair distribution of goods is impossible, efficiency is the next best goal. B. Efficiency gives the poor an incentive to improve their economic status. C. Efficiency maximizes total economic surplus and thereby allows other goals to be more easily achieved. D. People are not really concerned about the problems of the poor, so government must address them instead.
Which of the following is a characteristic of oligopoly?
A) easy entry and exit B) many firms C) strategic dependence D) horizontal market demand curve