If the price falls below minimum SRAVC, the quantity supplied by the firm will be
A. the quantity at minimum MC.
B. zero.
C. the quantity at the point where MC intersects AC.
D. the quantity at minimum AC.
Answer: B
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When the Dallas Cowboys decided on Arlington, Texas as the home for their new stadium in 2005, the City of Arlington used eminent domain to acquire property from individuals who were either unwilling to sell or demanded what the city deemed were
unreasonable prices for their property. In this situation, eminent domain A) reduced transactions costs. B) solved the holdout problem. C) accelerated the process of getting the stadium built. D) all of the above
If firms in an industry make output decisions that are partially based on the price and output decisions of their competitors, then these firms are in ________ market have ________ with the other firms in the market
A) an oligopoly; interdependence B) an oligopoly; no interdependence C) an oligopoly or monopolistically competitive; interdependence D) a monopolistically competitive; no interdependence
The GDP deflator of an economy is calculated by:
a. dividing nominal GDP by real GDP and multiplying by 100. b. dividing real GDP by nominal GDP and multiplying by 100. c. dividing nominal GDP by real GDP and multiplying by 1,000. d. dividing real GDP by nominal GDP and multiplying by 1,000.
Final goods and services refer to:
a) goods and services that are unsold and therefore added to inventories. b) goods and services whose value has been adjusted for changes in the price level. c) goods and services purchased by ultimate users, rather than for resale or further processing. d) the excess of U.S. exports over U.S. imports.