A firm has positive fixed cost and positive variable cost. At its current level of output, marginal cost equals average cost. The firm must
a. not be producing at its profit-maximizing level of output.
b. be producing the quantity that minimizes average cost.
c. be operating at a point at which total variable cost equals total fixed cost.
d. be earning negative profit.
b
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When demand is elastic, an increase in price causes the seller's total revenue to:
A. decrease. B. increase. C. fall to zero. D. remain the same.
Gross domestic product (measured in real dollars) is an important social tool because it provides
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What is the estimated value of the slope parameter when the regression equation, y = 
0+
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A. 
B. 
C. 
D. 