A firm maximizes its profit by producing the amount of output such that
A) marginal revenue equals marginal cost.
B) marginal revenue exceeds marginal cost by some amount.
C) marginal revenue is maximized.
D) marginal cost is minimized.
E) marginal revenue exceeds marginal cost by the maximum amount possible.
A
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The slope of the BP curve reflects the
A) ease with which capital flows across a nation's borders. B) inflation rate of the country. C) sensitivity of income to changes in the inflation rate. D) ease with which the central bank can keep an exchange rate fixed.
Which of the following statements best describes producer surplus in the supply and demand model?
a. Producer surplus is the area in the supply and demand model that is between the market price and the portion of the supply curve below equilibrium. b. Producer surplus is the area in the supply and demand model that is between the market price and the portion of the supply curve above equilibrium. c. Producer surplus is the area in the supply and demand model that is above the market price and the portion of the supply curve below equilibrium. d. Producer surplus is the area in the supply and demand model that is below the market price and the portion of the supply curve below equilibrium.
The long-run output of an economy depends on: (school)
What will be an ideal response?
If tablets have an absolute price elasticity of 1, the demand for tablets is
A. unit elastic. B. inelastic. C. perfectly elastic. D. elastic.