A firm should shut down if its total revenue is less than its ________ even when the firm produces the level of output at which price equals marginal cost.
A. marginal cost.
B. fixed cost.
C. total cost.
D. variable cost.
Answer: D
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In market economies, income distribution is always going to be completely equitable
Indicate whether the statement is true or false
Which of the following is most likely to close a recessionary gap in the economy?
a. A decrease in the expenditure on infrastructure b. An increase in the income tax rate c. An increase in the rate of foreign exchange d. A decrease in money supply e. An increase in the compensation for government employees
Answer the following statements true (T) or false (F)
1. Over the span of many years, a student and her family invest significant amounts of time and money into that student’s education. It is worth it, because median weekly earnings are about 10% higher for workers who have completed more education. 2. Cooperation between government-funded universities, academies, and the private sector has been shown to delay product innovation and repress whole new industries. 3. All goods and services with positive externalities are also public goods. 4. Government spending and taxes are not the only way to provide public goods. 5. Because nobody owns the ocean, or the creatures that live in it, no one has the ability to protect these resources and ensure they are responsibly harvested.
Your accountant tells you that if you can continue to earn the current interest rate on your balance of $800 for the next two years you will have $898.88 in your account. If your accountant is correct, then what is the current interest rate?
a. 6 percent b. 7 percent c. 8 percent d. 9 percent