Fixed costs
A. do not exist in the long run.
B. are zero if a firm produces no output.
C. depend on a firm's level of output.
D. are total costs minus average variable costs.
Answer: A
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Decreasing profit margins indicate a need to increase production in an economy
a. True b. False Indicate whether the statement is true or false
According to purchasing-power parity which of the following would happen if a country raised its money supply growth rate?
a. its nominal exchange rate would fall b. its real exchange rate would fall c. its real net exports would rise d. All of the above would happen.
Governments usually provide national defense from tax funds because
What will be an ideal response?
The following table depicts the cost and demand structure a natural monopoly faces. Provided that the firm operates as a monopolist, what is the price charged and quantity produced in order to maximize profits?
A. price charged of $800 and quantity produced of 2 B. price charged of $900 and quantity produced of 1 C. price charged of $600 and quantity produced of 4 D. price charged of $700 and quantity produced of 3