If a firm is operating at a loss in the short run and finds that its price is greater than average variable cost, then in the short run
a. it should produce where MR = MC
b. it should produce zero output
c. it should go out of business
d. total revenue is less than total variable costs
e. total revenue is greater than total costs
A
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According to the Gordon-Growth model, if the stock price is $21, required return on equity is 10% and the current dividend is $1, what is the expected growth rate of dividends?
A) 2% B) 5% C) 10% D) 15%
In the socialist controversy
a. Marx demonstrated the superiority of capitalism b. Marx demonstrated the superiority of socialism c. Keynes showed that capitalism was unstable d. Hayek and Mises argued that socialism would be inefficient e. Kornai talked about soft budgets
Most economists agree that ________ are the single most important source of productivity improvements.
A. increases in physical capital B. discoveries of natural resources C. technological advances D. increases in human capital
The way in which an oligopolist acts in response to a price change by a competitor is known as a
A) zero-sum game. B) positive-sum game. C) reaction function. D) cooperative game.