If price is equal to short-run average variable cost, the firm is at the point known as:
a. the break even point.
b. the profit maximizing point.
c. the shutdown point.
d. the revenue maximizing point.
c
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Discuss the role of individuals and governments in committing environmental damage.
What will be an ideal response?
A perfectly competitive firm is making an economic profit when
A) its total revenue is greater than its total cost. B) the price is greater than the minimum of its average total cost. C) the price is greater than the minimum of its average variable cost. D) Both answers A and B are correct.
The first important federal law passed to regulate monopolies in the United States was the
A) Sherman Act. B) Cellar-Kefauver Act. C) Federal Trade Commission Act. D) Clayton Act.
An unexpected increase in the supply of money will
a. reduce the real rate of interest and, thereby, trigger an increase in current spending by households and businesses. b. reduce aggregate demand and real output in the short run. c. increase only the general level of prices in the short run. d. lead to a higher rate of unemployment in the short run.