What are the major sources of risk for the firm?
What will be an ideal response?
Economic uncertainty, competition (actions of competitors), changes in demand, changes in technology, changes in input costs
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Auto and steel workers commonly experience this type of unemployment in a recession
A) frictional unemployment B) cyclical unemployment C) structural unemployment D) natural unemployment rate
Consumer surplus is the:
a. number of consumers who are excluded from a market because of scarcity. b. amount of a good that consumers will buy at a price below the equilibrium price. c. amount consumers are willing to pay for a good minus the amount the consumers actually pay for it. d. amount consumers are willing to pay for a good minus the cost of producing the good.
If a government increases its budget deficit, then domestic interest rates
a. and net exports rise. b. rise and net exports fall. c. fall and net exports rise. d. and net exports fall.
Exhibit 7-10 Price and cost data for a firm Q P AVC ATC MC 0 $12 ? ? ? 1 12 3 5 5 2 12 5 6 7 3 12 7.3 8 12 4 12 9.5 10 16 In Exhibit 7-10, the maximum possible total profit is:
A. $36. B. $24. C. $12. D. $8.