When total revenue minus total economic cost is greater than zero, the firm is
a. earning higher than normal profits.
b. earning the normal profit rate.
c. making economic losses.
d. earning economic profit but accounting losses.
A
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Which of the following statements is not true? a. Oligopolies usually have few firms each with some significant degree of market power
b. Only a small percentage of industries have four-firm concentration ratios above 85 percent. c. Market price is related to the concentration ratio. d. The United States is becoming more oligopolistic. e. Karl Marx believed the United States was becoming more oligopolistic.
A lottery promises a $250,000 prize. But the prize money is paid out in $50,000 annual installments with the first installment received today.. The winner is offered the option of an immediate lump-sum payment. If the interest rate remains at 10 percent for the entire period, what is the smallest amount the winner should accept?
a. $189,540 b. $192,970 c. $208,494 d. $225,000
According to the text, the procedure of "anchoring and adjustment:"
A. describes people who are dogmatic in their views but change when new data comes. B. often leads to biased estimates. C. usually leads to correct estimates without rational calculations. D. explains why people tend to succeed at new business ventures.
If average fixed costs equal $60 and average total costs equal $120 when output is 100, the total variable cost must be:
A. $40. B. $60. C. $6,000. D. $8,000.