Why would a firm decide to produce a positive quantity of a output even though it makes negative profits by doing so?
A) Because the price is high enough to cover the average fixed cost.
B) Because the price is high enough to cover the average variable cost.
C) Because the price is high enough to cover the average total cost.
D) A firm would never produce when profit is negative.
Ans: B) Because the price is high enough to cover the average variable cost.
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Financial securities that represent promises to repay a specified amount of money at a particular point in the future are
A) bonds. B) stocks. C) commodities. D) mutual funds.
Federal budget deficits became progressively smaller during the 1990s, and turned into a surplus by 1998
Indicate whether the statement is true or false
One explanation given in the video for the fluctuations of an economy's real growth rate around its potential growth rate is:
A. that there are often shocks to the planned level of spending. B. that there are often shocks to the money supply. C. that the potential growth is inaccurately calculated. D. that there are often shocks to the key growth factors
Refer to the above figure. Which point or points represent(s) a long-run equilibrium?
A. A only B. B only C. C only D. both A and B