If, at the point where MR = MC, the firm incurs losses, in the short run the firm should:
a. shut down.
b. increase output.
c. decrease output.
d. continue at its current output if P > AVC.
e. continue at its current output if P > ATC.
d
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The Fed affects aggregate demand through monetary policy by changing
A) tax rates on only interest income and so influencing disposable income. B) government expenditure and so influencing the budget balance. C) the quantity of reserves and determining government expenditure. D) tax rates and influencing disposable income. E) the federal funds rate and the quantity of reserves.
A put option gives the owner the
A) right to sell the underlying security. B) obligation to sell the underlying security. C) right to buy the underlying security. D) obligation to buy the underlying security.
In markets, prices move toward equilibrium because of
a. government regulations placed on market participants. b. buyers' ability to affect market outcomes. c. the actions of buyers and sellers. d. increased competition among sellers.
Refer to the information provided in Figure 23.2 below to answer the question(s) that follow.
Figure 23.2Refer to Figure 23.2. The line segment ________ represents Jerry's consumption when income equals zero.
A. BC B. DA C. BD D. BA