The difference between a firm's profit-maximizing quantity and the quantity that minimizes average cost is called:
a. economic profit.
b. excess capacity.
c. economic rent.
d. excess supply.
b
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An equilibrium in a game in which players pursue their own self-interest is called
A) a prisoner's dilemma. B) a Nash equilibrium. C) a noncooperative equilibrium. D) a cooperative equilibrium.
Fixed exchange rates allow countries to formulate their economic policies independent of other nations
a. True b. False Indicate whether the statement is true or false
The market demand curve for a particular good
a. may be horizontal even if the individual consumers' demand curves are downward sloping b. will always shift to the right as the price of the good decreases c. is even more likely to be downward sloping than an individual consumer's demand curve d. will always shift to the right if consumers' incomes increase e. must be flatter than the flattest of the individual consumer demand curves
The balance of payments and the balance of trade are
a. exactly the same thing. b. not exactly the same thing but are always equal. c. two different and unrelated things. d. two different things, but one is a part of the other.