For the perfectly competitive firm, economic profit equals:
a. (price - marginal cost) x quantity.
b. (price - average total cost) x quantity.
c. (price - average variable cost) x quantity.
d. total revenue - total fixed cost.
Ans: b. (price - average total cost) x quantity.
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Symmetry of net substitution effects is one of the principal conclusions of the theory of utility maximization. Which two mathematical theorems are used to prove this symmetry?
a. Taylor's Theorem and Fundamental Theorem of Calculus b. Cauchy's Theorem and DeMoivre's Theorem c. Lagrangian Theorem and Fundamental Theorem of Calculus d. Envelope Theorem and Young's Theorem
What is the annual rate of economic growth in Japan if real GDP at the beginning of the year is 11.9 trillion yen and real GDP at the end of the year is 11.1 trillion yen?
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