A firm will continue to operate in the long run as long as price exceeds long-run average variable cost.
Answer the following statement true (T) or false (F)
True
Firms will stay in business in the long run if price exceeds or is equal to AVC.
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
The following chart indicates the reductions in total losses due to theft if a jewelry store hires additional security guards. Number Dollar Value of of Guards Thefts Prevented 1 150 2 240 3 310 4 360 5 400 6 430 If the security guards can be hired for $45 per day, how many guards should the shop hire?
A. 2. B. 3. C. 4. D. 5.
Use the above figure. When the budget line rotates from "c" to "b"
A. the price of product J increases. B. the price of product K increases. C. the price of product J decreases. D. the price of product K decreases.
All of the following are market determinants of exchange rates EXCEPT
A. changes in productivity in one country relative to another. B. changes in the relative prices of goods and services within a country. C. changes in real interest rates in one country relative to another. D. changes in product preferences between countries.