What does average total cost equal?
a. change in total costs divided by quantity produced
b. change in total costs divided by change in quantity produced
c. (fixed costs plus variable costs) divided by change in quantity produced
d. (fixed costs plus variable costs) divided by quantity produced
Ans: d. (fixed costs plus variable costs) divided by quantity produced
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Gross investment minus net investment is equal to
A) consumption. B) nominal investment. C) depreciation. D) real investment.
The above figure shows three possible average total cost curves
If all firms in a perfectly competitive industry each have an average total cost curve identical to ATC1, each produce 30 units, and the market price of the good is $16 per unit, then the firms A) make zero economic profit and new firms enter the market. B) make zero economic profit and no firms enter or exit the market. C) make zero economic profit and some firms exit the market. D) incur an economic loss and some firms exit the market. E) make an economic profit and new firms enter the market.
A key assumption in the segmented markets theory is that bonds of different maturities
A) are not substitutes at all. B) are perfect substitutes. C) are substitutes only if the investor is given a premium incentive. D) are substitutes but not perfect substitutes.
If the current shareholders begin to believe that the prices of the stocks are likely to rise in the future, the supply curve of shares will:
a. shift to the right. b. become perfectly elastic. c. slope downward. d. shift to the left. e. become perfectly inelastic.