A firm has excess capacity if its output is
A) less than the quantity at which marginal cost is minimized.
B) less than the quantity at which economic profit is maximized.
C) less than the quantity at which average total cost is minimized.
D) more than the quantity at which average total cost is minimized.
C
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The relationship between the inputs employed by a firm and the maximum output that it can produce with those inputs is the firm's
A) production function. B) marginal product of labor. C) average product of labor. D) supply curve, or supply schedule.
Contractionary fiscal policy involving federal spending cuts or tax increases can help to reduce the upward pressure on the _____________ level by shifting aggregate demand to the left.
a. trade b. production c. price d. employment
Which of the following is both a financial institution and a financial intermediary?
a. banks b. stock exchanges c. the bond market d. All of the above are correct.
In direct finance, funds are loaned and borrowed through a financial intermediary
Indicate whether the statement is true or false