When the market price has fallen below a firm's ATC but is above its AVC, in the short run, the firm:
A. then MC must be greater than MR.
B. can minimize its losses by staying open.
C. is earning positive profits.
D. then a firm is covering all of its fixed costs, but not all of its variable costs.
B. can minimize its losses by staying open.
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Market failure happens when a market does not generate the most efficient outcome
Indicate whether the statement is true or false
If real income rises 5%, prices rise 3%, and nominal money demand rises 7%, what is the income elasticity of real money demand?
A) 3/4 B) 4/5 C) 5/6 D) 6/7
If a monopolist's marginal revenue is less than zero over a range of output, then price elasticity of demand must be: a. greater than one. b. equal to one
c. less than one. d. equal to zero.
Are public goods excludable? Are they rival in consumption?