When a profit-maximizing competitive firm finds itself minimizing losses because it is unable to earn a positive profit, this task is accomplished by producing the quantity at which price is equal to
a. sunk cost.
b. average fixed cost.
c. average variable cost.
d. marginal cost.
d
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The adding up of individual economic variables to obtain economy wide totals is called:
A. monetary policy. B. aggregation. C. normative analysis. D. average labor productivity.
An increase in the interest rate, other things constant, will: a. shift the demand for loanable funds curve to the right. b. shift the demand for loanable funds curve to the left. c. decrease the quantity of loanable funds supplied
d. decrease the quantity of loanable funds demanded. e. shift the supply of loanable funds curve to the right.
The Federal Reserve System began operations in
A) 1834. B) 1896. C) 1914. D) 1935.
Several years ago while teaching in Russia, I was using a production function like the ones used in this text. Output is a function of labor, capital and technology. One professor asked me how I could talk about production without including all the inputs that go into the process. Write a response to this professor from what you know of a production function.You should focus on the concept of value added production.
What will be an ideal response?