A firm earning economic losses should operate in the short run as long as
A. the price per unit sold is equal to or greater than the marginal cost of production.
B. marginal revenue is at least the price per unit sold.
C. the price per unit sold is greater than the average variable cost per unit produced.
D. the price per unit sold is greater than the average fixed cost per unit produced.
Answer: C
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A society that is inside its production possibilities frontier is efficient.
Answer the following statement true (T) or false (F)
In the above table, what is marginal product of labor for the 5th worker?
A) 10 B) 14 C) 9 D) 11.2
The aggregate demand curve has a negative slope, because households and businesses respond to an increase in ________ by reducing their expenditures
A) the inflation rate B) output C) the real interest rate D) all of the above E) none of the above
If the economy is in a recession, in an effort to move the economy to the long-run equilibrium, the government could:
A. increase spending to increase aggregate demand. B. decrease spending to decrease aggregate demand. C. increase spending to decrease aggregate demand. D. decrease spending to increase aggregate demand.