If a profit-maximizing firm in a perfectly competitive market is currently producing the output where (price - average variable cost) < average fixed cost, the firm is:
A. making a positive economic profit.
B. making a zero economic profit.
C. suffering an economic loss.
D. None of these
Answer: C
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Policy making that is carried out in response to a rule is
A) restrictive policy making. B) passive policy making. C) determined policy making. D) active policy making.
As per capita GDP has risen over time in the United States and other countries, the
What will be an ideal response?
Which of the following is likeliest to have increased between points A and D?
a. price indices
b. interest rates
c. government spending
d. net imports
The figure below illustrates the market for British pounds. D£ and S£ are the nonofficial demand and supply curves of the British pounds, respectively.
At an exchange rate of $2.50 per pound, there is an
A. excess demand for 0.5 million pounds. B. excess supply of 1 million pounds. C. excess demand for 1 million pounds. D. excess supply of 0.5 million pounds.