As long as average revenue remains above average total cost:
A. total revenue will be higher than total cost.
B. the firm will be making profits.
C. price will be greater than average total cost.
D. All of these are true.
D. All of these are true.
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Fogel argued that railroads were more cost effective than canals because railroads were faster and were in service all year and that using rail instead of canals would ____
a. lower freight rates on the railroads b. lower government subsidies for railroads c. lower eastern inventories of grain in the d. reduce the wheat being shipped to Europe
To avoid driving a natural monopolist into bankruptcy, regulatory commissions:
a. allow the monopolist to enjoy an economic profit. b. do not allow the monopolist to make an accounting profit. c. subsidize the monopolist to help it break even. d. allow the monopolist to earn a fair rate of return. e. allow the monopolist to temporarily shut down.
In the early 1990s, some ________________ experienced inflation rates in the triple digits
a. of the newly emerging nations of Central Europe and the former Soviet Union b. East African nations c. Latin American nations d. Asian nations e. West African nations
Other things constant, an increase in resource prices will
a. increase the demand for goods and services. b. increase the cost of producing goods and services, which will lead to a higher price level. c. reduce costs and improve profit margins, which will lead to an increase in aggregate supply in the goods and services market. d. cause the natural rate of unemployment to rise.