Using a TR-TC graph, a firm maximizes profit by producing the output level where the greatest
a. vertical distance occurs between the MR and MC curves
b. vertical distance occurs between the TR and TC curves, and the TR curve is above the TC curve
c. total revenue occurs
d. horizontal distance occurs between the TR and TC curves, and the TR curve is above the TC curve
e. horizontal distance occurs between the MR and MC curves, and the MR curve is rising
B
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If people in Pottsville purchase 20 percent more pickles today than they did in 1980,even though the price of pickles has increased 40 percent since 1980, the demand for pickles in Pottsville
A) does not obey the law of demand. B) has changed since 1980. C) is relatively elastic. D) is relatively inelastic. E) is unit elastic.
Income inequality in the United States has increased somewhat over the past 25 years. Two factors that appear to have contributed to this are
A) rapid technological change and expanding international trade. B) strong economic growth and low inflation. C) tax cuts on high-income individuals and large increases in prices of stocks. D) outsourcing of jobs by U.S. firms and cuts in taxes on capital gains.