When a profit-maximizing firm is earning profits, those profits can be identified by

a. P × Q.
b. (MC - AVC) × Q.
c. (P - ATC) × Q.
d. (P - AVC) × Q.


c

Economics

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A) "how" B) "what" C) "defense" D) "for whom"

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An example of a market where a Bertrand model would be plausible is the market for

A) oil. B) wheat. C) beer. D) sugar.

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If the cross-price elasticity of demand between lettuce and salad dressing is negative, then when the price of lettuce rises, the demand for salad dressing will ________.

A. remain the same B. increase C. decrease D. become more inelastic

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The ability to produce a good or service at a lower opportunity cost than other producers is called

A) absolute advantage. B) comparative advantage. C) implicit advantage. D) marginal advantage.

Economics