A firm reaches a break-even point (normal profit position) where:
A. marginal revenue cuts the horizontal axis.
B. marginal cost intersects the average variable cost curve.
C. total revenue equals total variable cost.
D. total revenue and total cost are equal.
Answer: D
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The production possibilities frontier itself illustrates
A) all goods that can be produced by an economy. B) the combination of goods and services that can be produced efficiently. C) all goods and services that are desired but cannot be produced due to scarce resources. D) all possible production of capital goods.
If we observe that a consumer's budget constraint has shifted outward, we can assume that the consumer will buy
a. fewer normal goods and more inferior goods. b. more normal goods and fewer inferior goods. c. more normal goods and more inferior goods. d. fewer normal goods and fewer inferior goods.