Assume that at the current level of output, price equals marginal revenue, but is less than average total cost. So long as price is greater than average variable cost, the firm should continue to operate in the short run to minimize its losses
Indicate whether the statement is true or false
TRUE
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In 2012, consumers in Dexter consumed only books and pens. The prices and quantities for 2012 and 2013 are listed in the table above. The reference base period for Dexter's CPI is 2012. What is the cost of the CPI basket in 2013?
A) $430 B) $335 C) $320 D) $540
When you borrow money from a bank, your bank charges you interest on the loan to compensate for all of the following except
A) inflation. B) liquidity risk. C) the risk of default. D) the opportunity cost of other uses for the loaned money.
Which of the following is not an example of derived demand?
a. As more high school graduates go on to college, more professors are hired. b. As consumers buy more computers, they demand more powerful computers as they become available. c. As people let their hair grow longer, fewer people become barbers. d. As people buy more tennis shoes instead of sandals, they buy more shoe laces. e. Increased demand for overnight delivery speeds up orders for new delivery trucks.
Specialization allows individuals to:
A. become more self-sufficient. B. focus their attention on one aspect of production. C. better understand the entire production process. D. broaden their skill base.