Refer to Figure 12-1. If the firm is producing 500 units
A) it should maintain its output to maximize profit.
B) it is making a profit.
C) it is making a loss.
D) it should increase its output to maximize profit.
A
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Why are public goods provided by the government, rather than by the private sector?
A) because they are large-scale projects that require the kind of financing only governments can generate through the issuance of bonds B) because it would be difficult for a private sector firm to make a profit providing a public good, since consumers who benefit would not have to pay for it C) because no one really benefits from public goods D) because private sector firms do not have the foresight to plan for public goods
The relationship between the market price of a good and the quantity supplied of that good by a firm in the short run is the firm's:
A. short-run supply curve. B. average cost schedule. C. total revenue minus total cost schedule. D. optimal production level.