In the short run, the firm's average fixed costs
a. always increase as output increases.
b. always decline as output increases.
c. equal zero.
d. remain constant as output expands.
B
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If a perfectly competitive firm raised the price of its product,
A) its profits would increase. B) the quantity of output it sells decreases to zero. C) rival firms will follow suit and raise their prices also. D) the firm will be forced to advertise more. E) its total revenue would rise but its total cost would rise by more.
Ensuring that all information relevant for the pricing of securities is available to the public is the responsibility of the
A) Federal Reserve. B) Securities and Exchange Commission. C) New York Stock Exchange. D) NASD.
What was the least important reason for the failure of the Virginia Company?
a. Difficulty in finding good crops to grow b. The Company's employees had unforeseen labor alternatives. c. There was a relatively small incentive for employees to work hard. d. The death rate was much higher than they expected.
One of the reasons that President Bush advocated for the 2003 tax reform was
a. to create a ‘stimulus package' to counter a deepening of the recessionary phase ofthe business cycle b. to stem the growing rate of inflation c. to provide the revenues to fight the war on terrorism d. to curb the outflow of revenue to foreign countries by reducing trade imbalances e. to reduce the government deficit