How does a firm calculate its profit?
(A) Total revenue minus total cost.
(B) Variable cost plus total cost.
(C) Marginal revenue minus marginal cost.
(D) Total revenue minus marginal revenue.
Ans: (A) Total revenue minus total cost.
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If the economy receives an influx of new workers from immigration,
A) we will move down along the long-run aggregate supply curve. B) we will move up along the long-run aggregate supply curve. C) the long-run aggregate supply curve will shift to the right. D) the long-run aggregate supply curve will shift to the left.
Refer to Figure 2-8. Suppose Vidalia is currently producing 120 dozen roses per period. How many orchids is it also producing, assuming that resources are fully utilized?
A) 20 dozen orchids B) 32 dozen orchids C) 44 dozen orchids D) 68 dozen orchids