For an investment to be considered autonomous, it must
A. include fixed components.
B. increase as the level of income increases.
C. be independent of the level of real disposable income.
D. be negatively related to the interest rate.
Answer: C
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a. True b. False Indicate whether the statement is true or false
Suppose a monopolist's demand curve lies below its average variable cost curve. The firm will:
a. earn an economic profit. b. stay in operation in the short-run. c. shut down. d. earn an economic profit in the long run.
Which of the following is consistent with competitive long-run equilibrium?
A.) Economic profits are maximized. B.) Average total costs of production are minimized. C.) Price equals the maximum of average total cost. D.) Marginal costs are minimized