If the Baloney Store earns more than a normal profit, its
a. economic profit must be greater than its accounting profit
b. economic profit is positive
c. economic profit is, therefore, equal to its accounting profit
d. accounting profit is zero
e. accounting profit is less than its economic profit
B
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By shutting down, a firm
A) stops receiving revenue but continues to pay variable costs. B) stops receiving revenue and is stuck with its fixed costs. C) avoids its sunk costs as well as its variable costs. D) can avoid paying taxes on its previously earned profits.
The rule of reason was an antitrust law guideline that emphasized the importance of ____ over ____
a. price; quantity b. quantity; price c. law; the economy d. size; behavior e. behavior; size
In what ways have financial innovations affected the demand for money?
What will be an ideal response?
Which of the following statements is true?
A. A model shows the estimated parameters of the explanatory variables. B. A model represents a population relationship. C. In an empirical paper, the estimation methods should be discussed before specifying a model. D. The methods for estimating a model are same as the model itself.