Suppose that in a perfectly competitive market, the market price is $10. A firm in that market has marginal cost of $10, average total cost of $12, and it is producing 100 units. The firm is
A) earning $1,000 in total economic profits and is maximizing economic profits.
B) earning $200 in total economic profits and is maximizing economic profits.
C) earning zero total economic profits and is not maximizing economic profits.
D) incurring $200 in total economic losses and is minimizing economic losses.
Answer: D
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Draw a scatter diagram of the inflation rate and the interest rate. Describe the relationship
What will be an ideal response?
One of the most important changes in the composition of the labor force in the United States has been
a. the major increase in the number of women who work outside the home. b. the drop in the number of men who only work part-time. c. the steady decline in the number of women who work. d. the increase in the ratio of male workers to female workers. e. the major increase in the number of men who work away from the home or farm.
Economic capital refers to:
What will be an ideal response?
Refer to the above diagram for the milk market. There would be a shortage of milk whenever the price is:
Higher than $2.00 per gallon Lower than $1.50 per gallon Higher than $1.50 per gallon Lower than $2.00 per gallon