A firm in a perfectly competitive industry faces the following cost and revenue conditions: ATC = $6; AVC = $3; MR = MC = $5. The firm is
A. earning economic profits.
B. in a position in which it should shut down.
C. experiencing economic losses.
D. experiencing zero profits.
Answer: C
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Over time, the percentage of total employment in services has ________ and in agriculture, employment has ________
A) increased; increased B) decreased; increased C) stayed about the same; decreased D) stayed about the same; increased E) increased; decreased
Corporations account for approximately what percentage of business activity in the United States?
a. 95 percent b. 90 percent c. 75 percent d. 50 percent e. 30 percent
Ashley puts money in a savings account at her bank earning 2 percent interest. One year later she takes her money out and notes that prices rose 3 percent. Ashley earned a a. real interest rate of -1 percent due to inflation
b. real interest rate of 1 percent due to inflation. c. nominal interest rate of -1 percent due to inflation. d. nominal interest rate of 1 percent due to inflation.
Marginal analysis is useful to a firm that seeks to
A. maximize its profits, but not minimize its losses. B. minimize its losses, but not maximize its profits. C. both maximize its profits and minimize its losses. D. neither maximize its profits nor minimize its losses.