In the above figure, if price is equal to P4, the firm will
A. incur an economic loss.
B. earn positive economic profits.
C. shut down.
D. earn zero economic profits.
Answer: B
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In reality, AD rarely ________; however, the economy performs as though it does when it ________
A) decreases; fluctuates with potential GDP B) increases; decreases at a pace much slower than potential GDP C) stagnates; increases at a pace much faster than potential GDP D) decreases; increases at a pace much slower than potential GDP E) decreases; increases at a pace much faster than potential GDP
The ________ is a theory of the balance of trade that emphasizes how domestic spending on domestic goods changes relative to domestic output
A) absorption approach B) monetary approach C) pass-through analysis D) elasticities approach
List the three coordination decisions made by every economy
a. Where? When? How? b. How? What? To whom? c. Why? Where? What? d. When? To Whom? Where?
The domestic demand and supply for sugar are Qd = 40,000 ? 200P and QSD = 10,000 + 300P. The foreign supply is QSF = 20,000 + 100P. What is the total supply of sugar in the domestic market?
A. Q = 15,000 + 200P B. Q = 10,000 + 300P C. Q = 50,000 + 100P D. Q = 30,000 + 400P