A firm operating in a perfectly competitive industry will continue to operate in the short run but earn losses if the market price is less than that firm's average variable cost
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
When potential GDP increases, short-run aggregate supply also increases, but long-run aggregate supply does not change
Indicate whether the statement is true or false
As more women entered the labor force in the 1980s in the United States:
a. the number of unskilled workers increased. b. the average quality of the labor force improved. c. the quantity of output decreased. d. the supply of skilled labor exceeded its demand. e. labor productivity increased.
According to the quantity theory of money, an increase in the quantity of money will increase the price level
a. and decrease real GDP and increase the velocity of circulation. b. and increase real GDP but decrease the velocity of circulation. c. but have no effect on real GDP or the velocity of circulation. d. and increase real GDP and the velocity of circulation. e. but have no effect on real GDP and will decrease the velocity of circulation.
Lola wants to make a 6% real return on a loan that she is planning to make, and the expected inflation rate during the period of the loan is 5%. She should charge an interest rate of
A. 1%. B. 6%. C. 11%. D. 16%.