A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . All else equal, if the firm continues its production in the same economic environment, the firms accounting profits should
a. increase
b. decrease
c. stay the same
d. does not affect profits
a
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When accounting profits are negative, economic profits
A) must be positive. B) will be negative. C) will equal zero. D) could be positive, negative or zero.
An increase in autonomous investment in an economy will _____
a. shift the aggregate expenditure line upward b. shift the aggregate expenditure line downward c. result in an upward movement along the aggregate expenditure line d. result in a downward movement along the aggregate expenditure line e. increase aggregate expenditures only at high levels of income
The Federal Open Market Committee:
A. includes all regional bank presidents and the Board of Governors. B. is the most important policy-making body of the Federal Reserve. C. is responsible for regulatory oversight and implementation of monetary policy of regional banks. D. is responsible for monitoring how goods and services are being sold on the open market.
Government policy-makers often must decide how to balance the potential benefits of ______________ against the potential benefits of _____________
A. competition; nationalization B. corporate size; competition C. corporate size; predatory pricing D. nationalization; privatization