In the long run, the perfectly competitive firm
A. earns an economic profit.
B. earns only a normal profit.
C. does not have a shut down price.
D. may produce even if it suffers a loss.
Answer: B
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A more complex view of the incentives facing a bureaucrat _____
a. shows that bureaucrats might prefer to maximize their discretionary budget over their total budget b. shows that bureaucrats might prefer to always act in the public interest, if they believe in their bureau's mission. c. shows that the incentives facing a bureaucrat are simple and never conflict with one another. d. shows that the bureaucrats may about increasing their own income but their power and prestige
Suppose you were working for Richstone's bakery and calculating whether the bakery was making a profit, considering the recent increase in rent. You have the following data: P = $20, AVC = $10, AFC = $8 and quantity of birthday cakes produced a day is 20
a. loss of $10 b. profit of $10 c. profit of $20 d. profit of $40 e. loss of $40
If a good is inferior, then an increase in income will result in a(n)
a. increase in the demand for the good. b. decrease in the demand for the good. c. movement down and to the right along the demand curve for the good. d. movement up and to the left along the demand curve for the good.
After identifying one combination of interest rates and GDP for which the demand for money is equal to the supply of money (equilibrium), to maintain the equilibrium if GDP rises:
A) this would not affect interest rates. B) interest rates would have to fall. C) interest rates would have to rise. D) interest rates would not be in parity with foreign rates of interest.