The shutdown point of a perfectly competitive firm occurs at the minimum point of its average total cost curve
a. True
b. False
Indicate whether the statement is true or false
False
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In a closed economy with no government, aggregate expenditure is
A) consumption plus investment. B) saving plus investment. C) consumption plus the MPC. D) MPC + MPS. E) none of the above.
An economy has no imports or income taxes. An increase in autonomous expenditure of $40 billion increases equilibrium expenditure by $160 billion. The expenditure multiplier equals
A) 2. B) 8. C) 6. D) 16. E) 4.
The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. What is the marginal social cost to the economy of Kaffenia of producing the 100th dozen doughnuts each day?
A) $10.00 per dozen B) $8.00 per dozen C) $6.00 per dozen D) $4.00 per dozen
The difference between zero accounting profit and zero economic profit is that
a. an economic profit of zero indicates a fair rate of return because it includes opportunity cost. opportunity cost and b. an economic profit of zero indicates an unacceptable rate of return because it does not include opportunity cost. c. an economic profit of zero indicates more than a fair rate of return because it includes opportunity cost and explicit cost.. d. an accounting profit of zero indicates a fair rate of return because it includes opportunity cost.