A firm will break even when
A) P > ATC. B) P = ATC. C) P = AVC. D) P < AVC.
B
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In Figure 11.1, a decrease in the marginal propensity to consume is represented by a change in the consumption function from
A) C1 to C3. B) C3 to C1. C) C2 to C1. D) C1 to C2.
When two variables have a direct relationship, the slope is
A) negative. B) positive. C) zero. D) infinity.
Which of the following is always a characteristic of the oligopoly market structure? a. Many sellers, each small in size relative to the overall market. b. Few sellers
c. All sellers produce identical products. d. Easy, low-cost entry and exit.
The risk-free rate is usually approximated by interest rates on U.S. government debt, because the US government:
A. backs all loans secured with that rate. B. sets all policy concerning interest rates. C. is considered extremely unlikely to default. D. will never default on a loan that it makes.