If the price exceeds the average variable cost, by producing the level of output such that marginal revenue equals marginal cost, the firm ensures that it will
A) earn an economic profit.
B) not suffer any losses.
C) earn the largest profit possible.
D) survive in the long run.
C
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Answer the following statement true (T) or false (F)
International trade is beneficial to a participating country when that country has a particular product that it is able to sell at a lower price compared to other participating countries
a. True b. False Indicate whether the statement is true or false
One economically valid approach to regulation is simply to break all large firms into many smaller ones.
Answer the following statement true (T) or false (F)
The Social Security check received by a retired couple
A. is included in the GDP because it is part of her income. B. is included in the GDP because she is entitled to it as a citizen. C. is excluded from GDP calculations because it is a transfer payment. D. is included in the GDP because it will be spent on goods and services.