If a firm has excess capacity, it
A) produces less than its efficient scale.
B) should advertise to maximize profits.
C) should decrease its markup to increase its profit.
D) is a perfectly competitive firm.
E) must face a horizontal demand curve.
A
You might also like to view...
Open market operations intended to offset movements in noncontrollable factors (such as float) that affect reserves and the monetary base are called
A) defensive open market operations. B) dynamic open market operations. C) offensive open market operations. D) reactionary open market operations.
Where the planned expenditure and the 45-degree lines intersect, the economy is ________ equilibrium, with unplanned inventory investment equal to ________
A) in, zero B) out of, zero C) in, planned inventory investment D) in, autonomous planned expenditure E) out of, autonomous planned expenditure
What best describes the role of the United States in World War I?
a. The U.S. entered World War I as soon as it started. b. The U.S. was a neutral moderator throughout the war. c. The U.S. entered the war on the side of Russia and opposed Austria Hungary. d. U.S. business suffered severe financial losses during the war.
Economists Cox and Alm compared the gap between rich and poor and found that the richest 20% was about 2 times better off than the poorest 20% when they compared what data?