Refer to the graph below. All data are for the short run. Which of the following statements is correct?
A. Production is profitable only when price is above P3
B. Average fixed cost is P1 P3 at output Q1
C. The firm will produce an output of Q1 when price is P1
D. At price P1, the firm will close down
D. At price P1, the firm will close down
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Your text identifies all of the following as reasons why unsustainable debt may occur EXCEPT
A) when countries are dependent on one or two key export commodities, and there is a sudden drop in the price of those commodities. B) when natural disasters occur. C) when civil conflicts are resolved and a peace dividend occurs. D) when there are corrupt politicians and practices. E) when government officials try to buy votes with unsustainable spending.
If the ice cream industry is monopolistically competitive, then: a. the price of ice cream equals marginal cost in equilibrium
b. the price of ice cream equals average cost in long-run equilibrium. c. the price of ice cream is less than marginal cost in equilibrium. d. there are significant barriers to entering the ice cream business.
If, as a result of market forces, the exchange rate changes from $1 equals 11 pesos to $1 equals 9 pesos, then the dollar has
A) appreciated. B) been revalued. C) been devalued. D) depreciated. E) There is not enough information to answer the question.
Which of the following is a component of a competitive market?
a. a buyer having significant market power b. buyers boycotting similar products c. sellers offering a wide variety of products d. a seller having little market power