In the short run, if a firm's total variable cost curve lies everywhere above its total revenue curve, the firm should produce
a. the output level that minimizes average total cost
b. the output level that minimizes average variable cost
c. the output level that minimizes the distance between marginal cost and marginal revenue
d. the output level that maximizes the distance between marginal cost and marginal revenue
e. no output
E
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Before the creation of the European Economic Community, there was the
A) European Economic Union. B) European Coal and Steel Community. C) European Union. D) European Free Trade Area. E) Single European Community.
What is stagflation, and how does it occur? How is stagflation represented in the aggregate demand-aggregate supply model?
What will be an ideal response?
What is one way firms can enforce tie-in sales?
A) One of the goods has no close substitutes. B) contractual arrangements C) information asymmetry D) Any of the above.
According to Arthur Schlesinger, Jr., government spending
a. may grow more slowly during conservative periods, but will never contract. b. follows a natural cycle of increases during liberal periods and decreases during conservative periods. c. grows at the same rate under both liberal and conservative leadership; only the distribution (defense v. civilian) of the spending changes. d. reflects attempts by political leaders to reject the dominant political ideology of their youth.