J. J. Joubert, of the Joubert Dairy, tells his friend Jacques that the average revenue he gets for a liter of milk is $1 . We know then that $1 is the dairy's
a. marginal profit
b. marginal cost
c. price
d. total revenue
e. total profit
C
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Suppose Ann can produce 8 units of a material good (M) or 4 units of a spiritual good (S) in a day, while Ben can produce only 3 Ms or 3 Ss in a day. Which statement below is true?
A) Ann is the most efficient producer of spiritual goods. B) Ann is the most efficient producer of material goods. C) Ben is the least efficient producer of spiritual goods. D) All of the above are true.
Refer to the scenario above. If the government removes the ban on Firm B and both Firm A and firm B aim at maximizing profits:
A) marginal cost of Firm A will eventually be greater than the marginal cost of Firm B. B) marginal cost of Firm B will eventually be greater than the marginal cost of Firm A. C) marginal cost of both firms will eventually be equalized. D) the difference in the marginal cost of both firms will eventually increase.
A futures contract
A. gives the owner the right, but not the obligation, to buy shares of a stock at a specified price within the time limits of the contract. B. gives the owner the right, but not the obligation, to sell shares of a stock at a specified price within the time limits of the contract. C. is a contract in which the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price. D. gives the owner the right, but not the obligation, to buy or sell shares of a stock at a specified price within the time limits of the contract.
Graphically, the presence of an external cost that is ignored by producers can be shown as
A) a market supply curve to the left of the market supply curve for where the producers have to pay for the external cost. B) a market supply curve to the right of the market supply curve for which the producers have to pay for the external cost. C) a market supply curve the same as the market supply curve for which the producers have to pay for the external cost. D) the absence of a market supply curve.