Economics: The Basics 1st Edition by Mike Mandel

Exercise 1

Say whether each of the following statements is true or false.
a) Revenue is the money that the business pays for its inputs.
b) When you buy a quart of milk from the local store, that's revenue for the store.
c) Profit-maximization is the only possible goal for a productive enterprise.
d) The labor inputs to a clothing store include the cash register.
e) The capital inputs to a trucking company include its telephone service.
f) The capital inputs to a restaurant include the tables customers eat at.
g) The intermediate inputs to a phone company include electricity.
h) The revenue function of a for-profit hospital tells you how many patients are treated, given the prices charged by the hospital.
i) A profit-maximizing business will increase production as long as marginal revenue exceeds marginal cost.