To maximize total profit in the short run, a perfectly competitive firm must find:
a. the quantity at which total revenue is at a maximum.
b. the quantity at which total cost is at a minimum.
c. the quantity at which total revenue is at a maximum and total cost is at a minimum.
d. the quantity at which total revenue exceeds total cost by the greatest amount.
d
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The impact of Hurricane Katrina on consumers in the economy was to make them very pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve?
A) This will move the economy down along a stationary aggregate demand curve. B) This will move the economy up along a stationary aggregate demand curve. C) This will shift the aggregate demand curve to the left. D) This will shift the aggregate demand curve to the right.
If the equilibrium price of good X is $4 and a price ceiling is imposed at $5, the result will be a(n):
a. depletion of inventories. b. shortage. c. surplus. d. equilibrium.
Explain how derivates were used to increase risk making the financial crisis of 2007-2009 more severe
For a firm operating in a competitive market, both marginal revenue and average revenue exceed the market price
a. True b. False Indicate whether the statement is true or false