Exhibit 8-11 A firm's cost and marginal revenue curves
In Exhibit 8-11, when the price rises from $5 to $8, the profit-maximizing (or loss-minimizing) firm goes from making a:
A. loss to making a smaller loss.
B. loss to making a larger loss.
C. loss to making a profit.
D. profit to making a loss.
Answer: C
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Contract negotiations between an employer and a labor union representing workers are referred to as:
A) collective bargaining. B) contractualization of employment. C) treaties. D) crowding out.
When people decide whether or not to get a flu vaccination, they ignore the ________ and as a result ________
A) marginal private benefit; too few vaccinations are given B) external benefit; too few vaccinations are given C) private cost; too many vaccinations are given D) marginal external cost; vouchers must be provided E) social cost; too many vaccinations are given
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What will be an ideal response?
Intermediate goods and services are:
A. used only as inputs to produce something else and are not counted as separate items in GDP. B. goods that consumers buy in parts-like a new tire for their car-and are included as separate items in GDP. C. used only as inputs to produce something else and are counted as separate itemsin GDP. D. goods that consumers buy in parts-like a new tire for their car-and are not included as separate items in GDP.