If the market price is less than a perfectly competitive firm's average total cost, what sort of profit or loss is the firm earning?
What will be an ideal response?
If the price is less than the average total cost, the firm is incurring an economic loss.
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Barylia is an economy with extractive institutions such as the absence of private property rights and high tax rates. Is it guaranteed that Barylia will always experience no growth or negative growth? Why or why not?
What will be an ideal response?
In a period of hyperinflation, the velocity of circulation increases because
A) the real interest rate rises. B) households and firms spend money as soon as they receive payment. C) the nominal interest rate decreases. D) money is valuable everyone wants it. E) potential GDP increases.
In the United States, the dollar was commodity backed by:
A. silver. B. oil. C. diamonds. D. gold.
Refer to the data. Suppose quantity demanded increased by 12 units at each price, changing the equilibrium price in a direction and an amount for you to determine. Over that price range, supply is
What will be an ideal response?