The difference between the sale value of the product and the value of the inputs that went into it is called the:
A. value-added of that stage of production.
B. value of the final product.
C. profit margin.
D. mark up.
A. value-added of that stage of production.
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A perfectly competitive firm should continue to operate even at a loss in the short run if
A. it can cover its variable costs of production. B. its revenues are less than its fixed costs. C. it has some fixed costs that cannot be brought down to zero. D. its output is above the break-even point.
In one day, Brandon can either plow 10 acres or plant 20 acres. In one day, Christopher can either plow 14 acres or plant 14 acres. Which of the following statements about comparative advantage is CORRECT?
A) Brandon has a comparative advantage in both plowing and planting. B) Brandon has a comparative advantage only in plowing. C) Brandon has a comparative advantage only in planting. D) Christopher has a comparative advantage in both plowing and planting.
Although an improvement in technology enables perfectly competitive firms to earn a positive economic profit in the short run, entry by new firms will ensure that those profits are eliminated over time
Indicate whether the statement is true or false
If the price of a bond increases, the interest rate (or rate of return on the bond) decreases
a. True b. False