According to economic theory, profits are maximized at the rate of output where
A) price equals total revenue.
B) marginal revenue equals marginal cost.
C) economic profits are zero.
D) price and marginal revenue are equal.
B
Economics
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Which of the following is not a valid criticism of Fogel's (1964) methodology in his study of railroads?
(a) The canal prices used for 1890 were low. (b) The impact of railroads on financial markets is ignored. (c) The nonpecuniary gains from using railroads could have been considered. (d) The amount of land cultivated would have been reduced.
Economics
Comparative advantage implies choosing the activity that
A) has a high opportunity cost. B) is inside the production possibilities frontier. C) has the lowest opportunity cost. D) does not demand any specialization.
Economics