A firm is making zero economic profits. From this, we know that
A) the firm is going to go out of business.
B) implicit costs are zero.
C) the firm is going to stay in business, but will not be able to attract new financial capital.
D) the firm will stay in business since it is covering all relevant opportunity costs.
D
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What are the two parts of the economic problem? a. economics explains many things, but only things that are related directly to money
b. natural resources are scarce but human-made resources are not. c. scarcity forces us to choose and choices are costly because we must give up other opportunities that we value. d. we have unlimited wants and unlimited resources.
It might be useful to think of macroeconomics as a study of ____ and microeconomics as a study of ____
a. big corporations, small businesses b. oceans, fish c. the long run, the short run d. abstract, concrete e. theory, reality
Consider an unregulated monopoly in Figure 13.2. At the firm's profit maximizing output level, its total revenue is:
A. $1,000,000. B. $200,000. C. $800,000. D. $600,000.
An increase in the interest rate should ________ the demand for dollars and the value of the dollar, and net exports should ________
A) decrease; decrease B) decrease; increase C) increase; decrease D) increase; increase E) increase; not change