At an output of 10, ATC is $9 and price is $9. At an output of 11, ATC is $9 and price is $9. MC = MR at an output of 10.5. At that output the firm will
A. take a loss.
B. break-even.
C. make a profit.
C. make a profit.
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Disinflation refers to
A) a rapid increase in the price level. B) a decrease in the price level. C) a reduction in the rate of inflation. D) an increase in the rate of inflation.
In an open economy, the law of one price implies that
A) the domestic economy may have a comparative advantage in only half the goods it produces. B) perfect competition holds in all domestic markets. C) purchasing power parity should hold. D) the nominal exchange rate should equal one.
Real investment tends to be
A) procyclical and less variable than real GDP. B) procyclical and more variable than real GDP. C) countercyclical and less variable than real GDP. D) countercyclical and more variable than real GDP.
To attract more bidders, and more aggressive bidders, to your auction
a. withhold relevant information about the value of the object b. allow bidders to know how others are bidding c. do not allow potential bidders to examine the object too closely d. do not hold oral auctions