The rate of production at which marginal revenue equals marginal cost is
A) a point of negative profits for the firm.
B) what determines the equilibrium price in the market.
C) the firm's shutdown point.
D) the point where profits are maximized.
D
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Which of these options best reflects Jim’s opportunity cost of operating his own business?
A. The total amount of money he spends to obtain capital equipment B. The value of Jim’s managerial skills that are used to run the business C. The cost of hiring his laborers D. All of the responses are correct.
The purpose of an effluent fee is to
A) reduce the amount produced of a good and to raise the market price. B) correct for pollution while keeping the price of the good the same as before the correction. C) reward people producing externalities. D) encourage producers to keep the quantity produced the same while lowering the price.
What is the main reason for anti-trust laws?
a. To keep prices low b. To ensure firms do not become too big c. To ensure active competition d. To prevent mergers
How will an increase in factor mobility, ceteris paribus, affect an economy's production possibilities curve?
A. Result in a movement along the curve. B. Shift the curve outward. C. Result in a movement from outside the curve to a point on the curve. D. Shift the curve inward.