A firm is producing output less than the output associated with the minimum point on the firm's short run average variable cost curve. At this level of output the firm uses its fixed capital input ________ and its variable labor input ________.
A. at a level higher than the lowest average cost; at a level higher than the lowest average cost
B. at a level higher than the lowest average cost; at the lowest average cost
C. at the lowest average cost; at the lowest average cost
D. at the lowest average cost; at a level higher than the lowest average cost
Answer: A
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The largest marital status category of black single parents in 1960 was "married-spouse absent."
Indicate whether the statement is true or false
James used $250,00 . from his savings account that paid an annual interest of 15% to purchase a hardware store. After one year, James sold the business for 320,000 . His accountant calculated his profit to be:
a. $320,000 b. $70,000 c. $282,500 d. $32,500
The difference between zero accounting profit and zero economic profit is that
a. an economic profit of zero indicates a fair rate of return because it includes opportunity cost. opportunity cost and b. an economic profit of zero indicates an unacceptable rate of return because it does not include opportunity cost. c. an economic profit of zero indicates more than a fair rate of return because it includes opportunity cost and explicit cost.. d. an accounting profit of zero indicates a fair rate of return because it includes opportunity cost.
If a severe natural disaster reduced the population of a city, one would expect a natural monopoly to:
A. raise prices. B. split into two firms. C. increase sales. D. merge with a competitor.