If the average total cost of supplying a good exceeds the price at which the good can be sold, then entrepreneurs have:
A. an incentive to raise the average total cost of producing the good.
B. no incentive to supply the good.
C. an incentive to supply only a small amount of the good.
D. an incentive to supply the good.
Answer: B
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Arguing that economic growth will eventually stop because we will run out of natural resources:
A. ignores the power of markets to recognize shortages and induce changes in behavior. B. must be correct because scarcity exists. C. is supported today by the fact that richer countries have fewer natural resources. D. will only be correct if growth takes the form of newer, more efficient goods and services.
Inheritance accounts for about
A) 5 percent of income inequality. B) 10 percent of income inequality. C) 15 percent of income inequality. D) 30 percent of income inequality.
The Fed could conduct an open market purchase to eliminate an inflationary gap.
a. true b. false
The price level in the United States is more flexible downward than upward.
Answer the following statement true (T) or false (F)