If price is less than its minimum average variable cost, a perfectly competitive firm that continues to produce in the short run
a. cannot cover any of its variable cost
b. incurs a loss greater than its fixed cost
c. can cover all of its fixed cost and some of its variable cost
d. can cover all of its variable cost and some of its fixed cost
e. can cover both its fixed costs and its variable cost
B
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How Monetary Policy Affects the Interest Rate?
In the past few centuries, choices have led to a substantial decline in the standards of living around the globe
Indicate whether the statement is true or false
Government is on the:
A. demand side of factor markets and the supply side of goods markets. B. supply side of factor markets and the demand side of goods markets. C. demand side of both factor markets and goods markets. D. supply side of both factor markets and goods markets.
A lower domestic price level should
A. decrease real wealth and consumption. B. increase net exports. C. decrease desired investment. D. none of these.