Within the framework of economics, optimization means providing a good or service until
a. total benefits are maximized.
b. total benefits and total costs are equal.
c. marginal benefits exceed marginal costs by the greatest amount possible.
d. marginal benefits and marginal costs are equal.
e. as long as total benefits are greater than total costs, any amount may be optimal under the right circumstances.
D
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Which of the following would most likely increase the demand for gasoline?
A. The expectation by consumers that gasoline prices will be higher in the future. B. The expectation by consumers that gasoline prices will be lower in the future. C. A widespread shift in car ownership from SUVs to hybrid sedans. D. A decrease in the price of public transportation.
In general, economic profits are:
A. less than accounting profits. B. the same as accounting profits. C. greater than accounting profits. D. not comparable to accounting profits.