Exhibit 7-11 A firm's cost and marginal revenue curves
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In Exhibit 7-11, when the price drops below $2, the profit-maximizing (or loss-minimizing) firm:
A. should shut down and produce zero.
B. should produce output equal to 4.
C. is making an economic profit of $8.
D. should try to produce more output.
Answer: A
Economics
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A) create a surplus of loans. B) create a shortage of loans. C) increase the demand for loans. D) decrease the supply of loans. E) do none of the above.
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The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for coffee after severe weather destroys a large portion of the coffee crop?
A) Graph A B) Graph B C) Graph C D) Graph D
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