A firm will break even when
A) P = ATC.
B) P > ATC.
C) P < AVC.
D) P = AVC.
Answer: A
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Refer to Table 2-9. What is Japan's opportunity cost of producing one wristwatch?
A) 0.04 pounds of rice B) 4 pounds of rice C) 25 pounds of rice D) 40 pounds of rice
A high marginal tax rate reduces work incentives
Indicate whether the statement is true or false
Refer to Figure 4-4. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for tennis balls in the United States?
A. a decrease in the price of tennis racquets B. an expectation by buyers that their incomes will increase in the very near future C. an increase in the price of tennis balls D. a decrease in the number of people in the United States under age 70
What action did the owner of the position illustrated above take in the futures or options market?
A. Buy a futures B. Sell a call option on futures C. Sell a futures D. Buy a put option on futures