If price is above average total costs, the firm
A) is earning positive profits.
B) is earning negative profits.
C) is making a normal rate of return on its capital investment.
D) may be earning a positive or negative profit depending upon costs.
A
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If the Slamdunkers can sell 5000 season tickets for $100 and 6000 season tickets only by lowering the price to $80, the demand for season tickets between the two prices is
A) elastic. B) inelastic. C) marginal. D) unit elastic.
If shortages or surpluses exist in a market, what helps guide the market back to equilibrium?
a. the invisible hand of competition b. the visible hand of government c. economic conservatives d. economic liberals
A share of common stock is a claim on a corporation's
A) debt. B) liabilities. C) expenses. D) earnings and assets.
If consumption expenditures fall, then in the short run
a. inflation and unemployment rise. b. inflation rises and unemployment falls. c. inflation falls and unemployment rises. d. inflation and unemployment fall.