A firm's ___________ consist of expenditures that must be made before production starts that typically, over the short run, _______________, regardless of the level of production.
a. fixed costs; do not change
b. variable costs; are constantly changing
c. fixed costs; are consistently changing
d. variable costs; do not change
a. fixed costs; do not change
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Which of the following statements is true of the long run?
A) Identical firms can enjoy positive economic profits. B) Identical firms face an upward-sloping supply curve. C) Non-identical firms can enjoy positive economic profits. D) Non-identical firms face a horizontal supply curve.
If the Central Bank wants to increase the supply of money in the economy, it should:
(a) Raise the reserve requirement. (b) Raise the rate of discount. (c) Buy government bonds in the market. (d) Both (a) and (b) are correct.
An economy operating its plant and equipment at full capacity implies a capacity utilization rate of
A. 40 percent. B. 70 percent. C. 85 percent. D. 100 percent.
Mike starts his own business after quitting his job in which he made $75,000. Expenses include $100,000 for wages and salaries, which includes a wage for the owner of $75,000, utilities of $5000, equipment of $50,000, and materials of $40,000. If
revenues are $200,000, his accounting and economic profits are respectively A) $80,000 and $5,000. B) -$70,000 and -$70,000. C) -$70,000 and $5,000. D) $5,000 and $5,000.