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
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When a country decides to produce fewer bombers and more public housing projects, it is answering the ________ part of one of the two big economic questions
A) "how" B) "what" C) "defense" D) "for whom"
An example of a market where a Bertrand model would be plausible is the market for
A) oil. B) wheat. C) beer. D) sugar.
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
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.