If a firm is operating at an output level where losses are minimized, the firm
A) has no incentive to stay in the industry.
B) is better off exiting the industry.
C) is maximizing profits.
D) will shut down.
C
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The balance of payments accounts record all of the following EXCEPT the country's
A) domestic investment. B) international lending. C) international borrowing. D) change in official reserves. E) international trading.
In the mid-1970s, antitrust policy began a new phase characterized by
a. the use of per se rules. b. reliance on economic analysis. c. the definition of a monopoly as a firm with dominant market share. d. repeal of the Clayton Act.
Which of the following pairs best represents substitute goods?
a. French fries and uncooked potatoes b. French fries and hot dogs c. French fries and French toast d. French fries and fried onion rings e. French fries and the French chef
In which case is the political process most likely to result in the acceptance of efficient projects and rejection of inefficient projects?
a. The benefits are highly concentrated, and costs are widespread among voters. b. The costs are highly concentrated, and the benefits are widespread among voters. c. Both the benefits and costs are widespread among voters. d. The benefits accrue primarily in the future, while the costs are more visible during the current period.