Joe's Butcher Shop is producing where MR = MC; Joe's Butcher Shop must be
A. earning a zero economic profit.
B. maximizing revenue but not maximizing profits.
C. maximizing profits.
D. incurring a loss.
Answer: C
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Refer to the figure above. If the monopolist faces a constant marginal cost of $6, at what price should it sell its output to maximize profits?
A) $2 B) $6 C) $10 D) $12
The consumption function is associated with
A. John Maynard Keynes. B. Karl Marx. C. Milton Friedman. D. Adam Smith.
A price-taker firm will tend to expand its output so long as its
a. marginal revenue is positive. b. marginal revenue is greater than the market price. c. marginal revenue is less than the market price. d. marginal cost is less than the market price.
Refer to the accompanying figure. For Chris, the opportunity cost of planting one bulb is removing:
A. 3 bags of trash. B. 25 bags of trash. C. 1/25 of a bag of trash. D. 1/3 of a bag of trash.