Why would a firm keep producing even though it is losing money?
a. If the price is greater than the minimum average total cost, the firm will cover all its variable costs and lower its losses by paying off some of its fixed costs.
b. If the price is less than the minimum average variable cost, the firm will cover all its variable costs and pay off some of its fixed costs.
c. If the price is greater than the minimum average variable cost, the firm will cover all its variable costs and pay off some of its fixed costs.
d. If the price is less than the minimum average variable cost, the firm will cover all its variable costs and pay off some of its fixed costs.
c. If the price is greater than the minimum average variable cost, the firm will cover all its variable costs and pay off some of its fixed costs.
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Marginal cost is the ________ associated with a particular increase in an activity
A) additional cost B) opportunity cost C) forgone cost D) total cost
A possible advantage of a horizontal merger for the economy is that
A) the government stands to collect more corporate income tax revenue. B) the merged firm might reap economies of scale which could translate into lower prices. C) the merging firms could avoid losses. D) the degree of competition in the industry will be intensified.
An increase in the monetary base that goes into ________ is not multiplied, while an increase that goes into ________ is multiplied
A) deposits; currency B) excess reserves; currency C) currency; excess reserves D) currency; deposits
Which of the following is true?
a. Tangible goods are subject to economic analysis but intangible goods are not b. Intangible goods are just an alternative term for services. c. Goods and services can be made costless by having the government give them away to citizens. d. All goods and services, whether tangible or intangible, are made from scarce resources and are subject to economic analysis.