At the level of output where the marginal cost and marginal revenue curves intersect, a monopolist's demand curve passes above its average total cost curve. The firm will:
a. be able to make a pure economic profit.
b. stay in operation in the short-run, but shut down.
c. shut down in the short-run.
d. increase its price.
a
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Stocks of small firms have a higher annual average return than stocks in general. Some economists attribute this to:
A) compensation for the higher risk of small firms B) lower liquidity of stocks of small firms C) higher information costs of stocks of small firms D) all of the above
The United States' balance of payments is likely to improve when
A) there is an increase in political instability in other countries. B) the inflation rate in the United States rises relative to other countries. C) the American government increases its spending on foreign aid. D) American people want to invest more in foreign countries.
A fall in the price of the final product produced by a firm will cause
A) a decline in the price of an input used to produce the good. B) a movement down the demand curve for an input used to produce the final product. C) a reduction in demand for an input used to produce the final product. D) a reduction in the supply of an input used to produce the final product.
Refer to the graph shown. If the firm is producing 450 units of output, profit is equal to:
A. $38. B. ?$30. C. $30. D. $0.