If price is less than average total cost, a firm
a. earns an economic profit
b. hires additional workers
c. moves its factory offshore
d. fires the marginal worker
e. suffers an economic loss
E
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Which of the following is a distinguishing characteristic of oligopoly?
A) A large number of firms compete. B) Each firm's actions influence the profits of all the other firms. C) Firms are free to enter and exit the industry. D) Natural barriers cannot prevent the entry of new firms.
How do regulators help to ensure the soundness of financial intermediaries?
What will be an ideal response?
Refer to Table 2.3. Assume that 2010 is the base year. Real GDP in 2007 is
A) $490.00. B) $568.00. C) $580.00. D) $671.00.
When you use a debit card to purchase a pair of jeans, you are
A. creating a 30-day loan from the seller to your bank. B. giving your bank an instruction to transfer funds directly from your bank account to the store's bank account. C. creating an overnight repurchase agreement between your bank and the store. D. creating a 30-day loan from your bank to the seller.