A profit-maximizing firm will continue to expand output
a. as long as the revenues from the production and sale of an additional unit exceeds the average costs of the unit.
b. until the average cost of producing the good or service is at a minimum.
c. as long as the revenues from the production and sale of an additional unit exceeds the marginal cost of the unit.
d. until the marginal cost of producing a good or service is at a minimum.
C
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"The market has failed to provide enough rental housing in New York City. This demonstrates another failure of free markets-they may lead to shortages of necessities." Explain why you agree or disagree
Which of the following would be considered a market?
a. political debate b. charity gala c. church service d. garage sale
With no inflation, a bank would be willing to lend a small business firm $5 million at an annual interest rate of 3 percent. But, if the rate of inflation was anticipated to be 4 percent, the bank would charge the firm an annual interest rate of:
A. 7 percent. B. 3 percent. C. 4 percent. D. 10 percent.
Human capital is equally, if not more, important than physical capital.
Answer the following statement true (T) or false (F)