The difference between price and average total cost is
A. marginal costs.
B. an irrelevant quantity.
C. average profit.
D. total costs.
Answer: C
You might also like to view...
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and nominal value of the domestic currency falls. b. The GDP Price Index falls, and nominal value of the domestic currency remains the same. c. There is not enough information to determine what happens to these two macroeconomic variables. d. The GDP Price Index rises, and nominal value of the domestic currency rises. e. The GDP Price Index falls, and nominal value of the domestic currency rises.
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The real risk-free interest rate falls and the current international transactions balance becomes more negative (or less positive). b. The real risk-free interest rate rises and the current international transactions balance becomes more negative (or less positive). c. The real risk-free interest rate and the current international transactions balance remain the same. d. The real risk-free interest rate rises and the current international transactions balance remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The invisible hand concept used to describe the guiding function of prices was developed by:
a. Henry George b. Milton Friedman c. Adam Smith d. John Kenneth Galbraith
Under monopolistic competition, entry to the industry is:
A. completely free of barriers. B. more difficult than under pure competition but not nearly as difficult as under pure monopoly. C. more difficult than under pure monopoly. D. blocked.