Economic profits disappear when:
A.) Price is greater than marginal costs.
B.) Price falls to the level of minimum average total cost.
C.) Price is greater than average variable cost.
D.) Firms exit an industry.
B.) Price falls to the level of minimum average total cost.
You might also like to view...
Crowding out can occur when a government budget ________ raises the real interest rate and the equilibrium quantity of investment ________
A) surplus; increases B) deficit; increases C) surplus; decreases D) surplus; does not change E) deficit; decreases
An American insurance company hires a call center in India to handle customer service calls in order to cut costs. Other things equal, this will ________ of the United States
A) decrease the financial account balance B) decrease net exports C) decrease the capital account balance D) increase the current account balance
In the capital market, the purchase price is what a:
A. producer pays to gain permanent ownership of a factor of production. B. consumer pays to use labor or land services for a certain period or task. C. consumer pays to gain permanent ownership of a factor of production. D. producer pays to use a factor of production for a certain period or task.
The 2009 fiscal stimulus bill represented approximately
a. 5.5% of GDP and was designed to close the expansionary gap. b. 5.5% of GDP and was designed to close the recessionary gap. c. 7.8% of GDP and was designed to close the expansionary gap. d. 7.8% of GDP and was designed to close the recessionary gap.