Refer to the above graph. At output level H, the area:
A. 0CGH represents the firm's variable cost of production.
B. 0CGH represents the firm's fixed costs of production.
C. ACGE represents the firm's economic profit.
D. 0AEH represents the firm's economic profit.
Answer: A
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According to the rational expectations theory, expansionary monetary policy will
a. reduce inflation. b. lead to inflation and the higher rate of inflation will be quickly anticipated. c. reduce unemployment because people will generally underestimate the inflationary side effects of the monetary expansion. d. accelerate inflation in the short run, but in the long run the primary effect will be an increase in employment.
Which of the following describes the effect on the domestic market of tariffs imposed on imported wool blankets?
a. Fewer wool blankets will be sold overall. b. Prices for domestic wool blankets will fall. c. Sales will fall for domestic wool producers. d. Imported wool blanket sales will increase.
An asset for a commercial bank is its US govt securities (treasury bonds, bills, and notes)
a. true b. false
The following is budget information for a hypothetical economy. All data are in billions of dollars.YearGovernment SpendingTax RevenuesGDP1$800$825$4,00028508504,20039008754,35049509004,50051,0009254,600Refer to the above data. The budget deficit was $75 billion in:
A. year 5. B. year 2. C. year 3. D. year 4.