Instituting a rent control program will most likely lead to
A) a shortage of rental units.
B) overly elaborate and expensive construction.
C) an efficient allocation of existing units among consumers.
D) an excess quantity supplied of rental units.
Answer: A
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If a firm is earning negative accounting profits, it implies
a. That the firm's economic profits are zero b. That the firm's economic profits are positive c. That the firm's economic profits are negative d. More information is needed to conclude about economic profits
A firm will shut down in the long-run if
a. P>AVC
b. P
Per capita income growth is measured by
a. income growth – population growth b. income growth × population growth c. income growth/population growth d. income/population e. income growth + population growth
Suppose the price of a product is less than its average variable cost. When the firm's fixed obligations are completely ended, it will now most likely
a. make an economic profit b. go out of business c. expand to a bigger operation d. continue to be shut down e. break even