Refer to Figure 15-2. If the firm's average total cost curve is ATC2, the firm will
A) suffer a loss.
B) break even.
C) make a profit.
D) face competition.
Answer: B) break even.
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Who observed that "in this world nothing is certain but death and taxes"?
a. Mark Twain
b. P.T. Barnum
c. Ben Franklin
d. Richard Nixon
What will be the effect of a tax cut on consumption if consumption offers diminishing returns?
What will be an ideal response?
Which event is most likely to increase the elasticity of demand for a good?
A) A decrease in the demand for the good B) A decrease in the price of the good C) An increase in the demand for the good D) Higher incomes for consumers of the good E) The appearance on the market of excellent substitutes for the good
As a source of bank funds, __________ has fallen by nearly two-thirds in relative importance since 1970
A) time deposits B) transactions deposits C) savings deposits D) equity