The graph to the right depicts the daily total cost and total revenue curves for a firm. If the firm chooses the profit maximizing level of output, it will earn a profit of per day. (Round your answer to the nearest penny.)

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A: Elasticity is a measure of how sensitive the quantity demanded or supplied of a good or service is…

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A: Supply curve shows the direct relationship between price and quantity supplied, ceteris paribus. The…

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A: Monopoly market refers to the market structure that can be identified by one seller, who sells a…

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A: The currency and cash in the economy are regulated by the central bank. The supply of money includes…

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A: It can be defined as a level of output that can benefit the whole of society not only any particular…

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A: A model used in macroeconomics is the (AD/AS) model. It clarifies how an economy's price level and…

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A: The growth of real GDP refers to the increase in the inflation-adjusted value of all goods and…

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A: The indifference curve is the locus of points of two goods that give the same level of satisfaction…

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Q: Julio receives utility from consuming food (F) and clothing (C) as given by the utility function…

A: Marginal Rate of Substitution: It represents the rate at which a person is willing to trade one good…

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A: Producer surplus is the benefit a seller gets by selling its output at price higher than its minimum…

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A: External costs or negative externalities are the harmful side effects arise out of production or…

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A: The market equilibrium quantity is where the private marginal benefit curve intersects the private…

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A: Average variable cost is the variable cost divided by the quantity.AVC is U shaped curve.Average…

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A: One type of financial instrument offered by central banks is the discount loan. These loans are…

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A: Consumer surplus is the area below the demand curve and above the equilibrium price level. Producer…

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A: Real GDP: GDP that is adjusted for inflation is known as real GDP, Real GDP is calculated at a…

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A: Total utility: The total satisfaction derived from the consumption of a good or service. Marginal…

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Q: 6. Consider the following AD/AS diagram. Suppose the economy experiences a positive aggregate demand…

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A: An activity by others that affects other parties is known as external cost. It may be cost or…

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A: Real interest rate is inflation adjusted nominal interest rate. Formula:Real interest rate = Nominal…

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A: Deadweight loss is the cost that society has to bear because of the inefficiency of the market…

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A: The breakeven point is a key concept in business and finance that reflects the level of sales or…

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