Refer to the above figure. Profits for this firm are positive
A) only for all points less than B.
B) only at points B and C.
C) for points between B and C.
D) for all points less than B and greater than C.
C
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Based on the table "Real and Nominal GDP," if year one is the base year, then the GDP deflator for year three is ________
A) 165 B) 139.8 C) 85.8 D) 133.6 E) 114.6
The new classical model implies that substitution of debt for tax financing
a. increases aggregate demand and exerts an expansionary effect on real output. b. is highly effective against inflation. c. reduces savings because it increases both the current and future tax liability of households. d. leaves wealth, and therefore aggregate demand, unchanged because the debt will require higher future tax rates.
When average cost is greater than marginal cost, marginal cost must be
a. rising. b. falling. c. constant. d. The direction of change in marginal cost cannot be determined from this information.
Firms that spend the greatest percentage of their revenue on advertising tend to be firms that sell
a. highly-differentiated consumer goods. b. goods produced by natural monopolies. c. agricultural products. d. products with a limited shelf life such as milk and lettuce.