The price-taker firm should discontinue production immediately if:
A. the market price exceeds the firm's average total costs.
B. the market price is less than the firm's average variable costs.
C. the market price is less than the firm's average total costs, but greater than its average variable cost.
D. its accounting statement indicates that it is suffering losses.
Answer: B
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A) short-run aggregate demand B) short-run aggregate supply C) long-run aggregate supply D) long-run aggregate demand
Find the real exchange rate for the following case: Assume that the representative basket of European goods costs 150 euros and the representative U.S
basket costs $90, and the dollar/euro exchange rate is $0.80 per euro, then the price of the European basket in terms of U.S. basket is:
Suppose a market has the demand function Qd=20-0.5P. Using the midpoint method, what is the price elasticity of demand between $30 and $40?
In 1976, the cost of a movie was $4. In 2012, it's $9. If the CPI for 1976 is 56, and 228 for 2012, then we could say the cost of a 1976 movie in 2012 would be:
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