A competitive firm currently produces and sells 500 units of output. Its total revenue is $3,500; the marginal cost of producing the 500th unit of output is $5.75; and the average total cost of producing the 500th unit of output is $4.00 . Is the firm maximizing its profit, or should it increase or decrease output in order to increase its profit?
For this firm, price = marginal revenue = $7 . Since marginal revenue exceeds marginal cost, the firm should increase its output in order to increase its profit.
Economics
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How did the gold standard help countries rectify the balance of payment problem? What were the problems associated with the gold standard?
Economics
Answer the question based on the information given in the table below that shows the items and figures taken from a consolidated balance sheet of the twelve Federal Reserve Banks. All figures are in billions of dollars.
In the balance sheet above for the Federal Reserve, the liabilities and net worth would be items 7 and:
A. 1, 3, and 5
B. 2, 4, and 5
C. 1, 2, and 3
D. 4, 5, and 6
Economics