Suppose the price of a product is less than its average variable cost. When the firm's fixed obligations are completely ended, it will now most likely:
A. make an economic profit.
B. go out of business.
C. expand to a bigger operation.
D. break even.
Answer: B
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Excess reserves are borrowed funds loaned in excess of legal reserve requirements
Indicate whether the statement is true or false
Individuals economize and respond predictably to
A) negative incentives, but not positive incentives. B) positive incentives, but not negative incentives. C) neither positive or negative incentives. D) both positive and negative incentives.
Which represents the percentage of all U.S. businesses that are corporations, and the percentage of all goods that those corporations sell?
a. 10% of businesses; 50% of goods sold b. 20% of businesses; 50% of goods sold c. 20% of businesses; 90% of goods sold d. 50% of businesses; 75% of goods sold
Refer to the diagram for a nondiscriminating monopolist. The profit-seeking monopolist will:
A. always produce at output q 2 .
B. always produce more than q 2 .
C. never produce an output larger than q 2 .
D. never produce an output larger than q 1 .