Refer to the above figure. The firm will just be covering all of its variable cost but none of its fixed cost
A. at prices between $1 and $2.
B. when the price equals $1.
C. when the price equals $2.
D. when the price equals $4.
Answer: B
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In countries that have experienced hyperinflation, what role have large government budget deficits played in causing the very high inflation rates?
What will be an ideal response?
An increase in the price of labor used to produce good Y will lead to
A) an increase in the market clearing price of good Y. B) an increase in the supply of good Y. C) a decrease in the demand for good Y. D) an increase in the demand for good Y.
An advantage of Microsoft Windows is its compatibility with the widest range of hardware and software. The dominance of Windows is self-reinforcing: hardware and software manufacturers ensure that their products are compatible with Windows in order to
have access to the large number of Windows users. Which situation best describes this scenario? A) endowment effects B) endorsement effects C) economies of scale D) network externalities
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.