For a perfectly competitive firm facing the short-run break-even price
A. it should expand production.
B. it has an economic profit of zero.
C. it should shut down.
D. it has a negative accounting profit.
Answer: B
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Refer to Figure 17-1. Suppose that the economy is currently at point A on the short-run Phillips curve in the figure above, and the unemployment rate at A is the natural rate
If the economy was to move to point C, which of the following must be true? A) Equilibrium GDP at point C must be above potential GDP. B) The Fed conducted contractionary policy to cause the move. C) The Fed sold treasury bills to cause the move. D) The economy is producing a level of GDP equal to potential GDP. E) Aggregate demand must have decreased.
A profit center is
a. evaluated based on minimizing costs within the division b. evaluated based on maximizing costs within the division c. evaluated based on minimizing profits generated by the division d. evaluated based on maximizing profits generated by the division
A nonexclusive good is a good that a. is sold in low price markets
b. is impossible to keep people from enjoying the benefits the good provides. c. is produced by a perfectly competitive firm. d. is produced at the lowest possible cost.
Assume a market that has an equilibrium price of $4. If the market price is set at $8, which of the following is true?
A. Some surplus is transferred from consumers to producers, causing total surplus to increase. B. All surplus is transferred from consumers to producers, and total surplus stays the same. C. Some surplus is transferred from consumers to producers, but total surplus falls. D. Some surplus is transferred from producers to consumers, but total surplus falls.