Figure 9.3Figure 9.3 shows the cost structure of a firm in a perfectly competitive market. The price at which the firm is just as well off either operating or shutting down is:
A. $3.
B. $4.50.
C. $6.
D. $10.
Answer: B
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Suppose Bank A holds $50,000 in deposits with other banks. In the balance sheet, this amount will be accounted as Bank A's:
A) cash equivalents. B) short-term borrowing. C) long-term investments. D) reserves.
Modern union leaders are
(a) generally much more conservative than their predecessors in the late 19th and early 20th centuries. (b) generally more radical than their predecessors in the late 19th and early 20th centuries. (c) neither more conservative nor more radical than their predecessors. (d) more radical on issues such as wages and working conditions but more conservative than their predecessors on issues such as abortion and the environment.
If the nominal interest rate is 6.3 percent and the inflation rate is 7.2 percent, then the real interest rate equals:
a. - 13.5 percent. b. + 13.5 percent. c. - 0.9 percent. d. -7.2 percent. e. + 1.1 percent.
Suppose the natural unemployment rate is 5 percent. Which of the following observations is consistent with an economy that is self-regulating?
A) The unemployment rate in the economy is always above 5 percent. B) The unemployment rate in the economy is always below 5 percent. C) There is a tendency for the unemployment rate in the economy to move toward 5 percent if it is not already there. D) If the unemployment rate in the economy is greater than 5 percent, wages start to rise. E) If the unemployment rate in the economy is less than 5 percent, wages start to fall.