In the above figure, the firm is incurring an economic loss at
A) point a.
B) point c.
C) points b and d.
D) points a, b, and d.
A
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Cartels are typically subject to cheating by their members because
A) if the other firms stick to the agreement, a firm can increase its profits by cutting its price. B) barriers to entry do not exist so new entrants will join. C) the U.S. Justice Department will punish any cartel agreement before the cartel has had a chance to operate. D) product differentiation allows the firms in the cartel to cheat.
Domestically produced goods and services sold to other countries are referred to as
A) imports. B) capital outflow. C) exports. D) transfer payments.
Explain how the value of marginal cost affects the values of average variable cost and average total cost and what this means for the relationship between the marginal cost curve and the average variable and total cost curves
What will be an ideal response?
Which of the following is the best example of an automatic stabilizer?
A. welfare payments B. foreign aid C. defense spending D. highway construction