If a perfectly competitive firm's average total cost curve is below its demand schedule at any level of output, then the firm will earn ________ profits.
A. break-even
B. negative
C. zero
D. positive
Answer: D
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Increases in the debt—GDP ratio are primarily caused by
A) a high growth rate of GDP. B) a high government deficit relative to GDP. C) increases in government borrowing through bonds. D) increases in interest rates.
Which of the following statements is correct? I. A drop in the foreign exchange value of the dollar would decrease aggregate demand II. A decrease in the amount of money in circulation would increase aggregate demand
A) I only B) II only C) Both I and II D) Neither I nor II
What would be the impact if the government forced the breakup of a natural monopoly to promote greater competition in an industry? a. Smaller firms would have a cost advantage over larger firms. b. The price paid by consumers would be unchanged
c. The average cost of producing the good would increase. d. The average cost of producing the good would decrease.
Which of the following would most likely increase the demand for peanut butter?
What will be an ideal response?