If your firm is producing a good at a level where marginal revenue equals marginal cost, and price is between average variable cost and average total cost, then in the short run your firm should:
A. shut down and suffer a loss equal to your fixed costs.
B. continue to produce, but increase output.
C. continue to produce at the same level of output.
D. continue to produce, but decrease output.
Answer: C
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A movement along the demand curve for a good can be attributed to a change in
a.the substitution effect of consuming a good
b.the demand for a good
c.the opportunity cost of producing a good.
d.the quantity demanded of a good
The duration of an expansion is measured from:
A. peak to peak. B. peak to trough. C. trough to trough. D. trough to peak.
A family on a trip budgets $800 for restaurant meals and fast food. The family can buy 16 restaurant meals if they don't buy any fast food. What is the price of a fast-food meal for the family?
a. $5 b. $16 c. $20 d. $50 e. it is impossible to tell from the information given
If Americans decide to buy more South African diamonds, what is the effect in the foreign market?
a. It will increase demand for U.S. dollars. b. It will decrease demand for U.S. dollars. c. It will increase supply of U.S. dollars. d. It will decrease supply of U.S. dollars.