The above figure illustrates a firm's total revenue and total cost curves. Which one of the following statements is FALSE?
A) Economic profit is the vertical distance between the total revenue curve and the total cost curve.
B) At output Q1 the firm makes zero economic profit.
C) At an output above Q3 the firm incurs an economic loss.
D) At output Q2 the firm incurs an economic loss.
D
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A price increase from $43 to $49 results in an increase in quantity supplied from 220 units to 240 units. The price elasticity of supply in this price range is (use the midpoint formula)
A. 1.50. B. 3.33. C. 0.67. D. 0.3.
"I'd rather have $100 now than wait for $100 six months from now." This person
A) displays a negative rate of time preference. B) displays a positive rate of time preference. C) displays a zero rate of time preference. D) displays irrational behavior because the money will be more valuable later.
Expected value is:
A. the average of each possible outcome of a future event, weighted by its probability of occurring. B. the average probability of all possible outcomes of a future event occurring, weighted by each possible outcome individually. C. the sum of all probabilities of all possible outcomes of a future event occurring. D. None of these statements is true.
The current chair of the Federal Reserve System is
a. Tim Geithner. b. Hillary Clinton. c. Ben Bernanke. d. Alan Greenspan. e. Janet Yellen