At a firm's profit-maximizing level of output, its price is $200 and its short-run average total cost is $225 . The firm
a. has a profit of $25 per unit of output.
b. should shut down if its short-run average fixed cost is less than $25.
c. has a loss of $100 per unit of output.
d. should shut down if its short-run average variable cost exceeds $25.
b
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Refer to the graph below. The movement from point 1 to point 2 is stimulated by a disequilibrium in which there is domestic ________ and ________
A) overemployment; trade surplus B) unemployment; trade surplus C) overemployment; trade deficit D) unemployment; trade deficit E) inflation; unemployment
A complete accounting of the costs of the tax system would not include _____
a. compliance costs b. legislative costs c. administrative costs d. political costs
Portfolio investment and foreign direct investment are methods through which
A) ownership in assets are acquired in countries other than one's home country. B) U.S. residents invest funds in companies that export goods. C) U.S. residents invest funds in companies that import goods. D) short-term investments are converted to long-term ones.
In the simple Keynesian model, the aggregate supply curve has a horizontal segment at levels of output below the level of natural Real GDP and a vertical segment at the level of natural Real GDP
Indicate whether the statement is true or false