If firms are producing at a profit-maximizing level of output where the price is less than the average total cost:
A. economic profits may be positive.
B. accounting profits will be zero.
C. economic profits are negative.
D. accounting profits must be positive.
C. economic profits are negative.
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The direction of colonial trade produced great trade deficits with England, especially in the New England Colonies. Consequently, growth and development were stifled in colonial America
Indicate whether the statement is true or false
If Apple's iTunes Music Store increases its "fee" for its music downloads, the law of demand predicts that
A) the number of iTunes music downloads would increase. B) there would be no change in the demand for iTunes music downloads. C) the number of iTunes music downloads would decrease. D) iTunes music supply would change but demand would not.
An increase in the price of an input will increase the _____ of producing the final good and shift the supply curve of the commodity _____
a. marginal cost; upward b. transaction cost; upward c. marginal cost; downward d. transaction cost; downward
Consider someone who borrows $10,000 to buy a car at a fixed interest rate of 9%. If inflation is 3% at the time the loan is made, what is the real interest rate at which the loan must be repaid, and to what level would the interest rate have to rise for the real interest rate on the loan to be zero?
a. 4.5%; 7.5% b. 6; 9% c. 8%; 10% d. 6; 12%