13

The following table shows the total cost schedule for a competitive firm:

Q

5

6

7

8

9

10

Total Cost

$25

$30

$37

$47

$60

$75

If the prevailing market price is $11 per unit, the firm should produce up to ____ units to maximize its profit.

6

7

8

9

Question 14

Which of the following is NOT the impact from a unit sales tax on a product?

It will shift the market demand curve to the left.

It will shift the market supply curve to the left.

It will lower the consumer surplus.

It will lower the producer surplus.

Question 15

In the United States, which of the following accounts for the greatest portion of GDP?

Household consumption

Business investment

Government spending

Net exports