If a firm is earning negative economic profits, it implies
a. That the firm's accounting profits are necessarily zero
b. That the firm's accounting profits are necessarily positive
c. That the firm's accounting profits are necessarily negative
d. Economic profits alone cannot determine accounting profits
d
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What is the usual response of firm to an increase in the price of what they sell?
A. An increase in output B. An increase in hiring factors of production C. An increase in the profit level of the firm D. An increase in employment at the firm E. All of these responses are correct.
Which of the following is true under natural monopoly?
A. The marginal cost curve will be equal to the average cost curve. B. The monopolist will set price equal to marginal cost and will earn economic profits. C. Economies of scale exist. D. Output is produced under conditions of constant cost.
A low-income household is usually who?
a. one person living alone b. a family headed by a single parent c. a family headed by a young single female, poorly educated and not working d. all of the above represent most low income households
What happens when the bond holder sells a bond after a price drop and before earning the full principal?