A virtuous cycle occurs
A) when a firm can attract enough buyers initially to increase a product's usefulness to attract even more buyers.
B) when lobbyists petition members of Congress to grant a public franchise; the lobbyist then raise money for those Congress members who granted the franchise.
C) when monopoly profits are used to create new products for additional monopoly profits.
D) when a firm's sales volume reaches a level where the firm can take advantage of economies of scale; thereby reducing the price of the product to further boost its sales.
A
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If the firm in the above figure produces output level D, it incurs an average fixed cost of production equal to the distance
A) DK. B) RN. C) JL. D) KR.
Suppose the government imposed a minimum price in a market and a reporter for a local newspaper wrote a story on it. The headline on the story would read:
a. Government Action Calls For Ration Coupons b. Rationing Price Replaces Market Price c. Price Ceiling Replaces Equilibrium Price d. Price Floor Replaces Equilibrium Price e. Equilibrium Price Lowered
Central Banks
What will be an ideal response?
In order to pay foreigners interest on the debt, the United States must:
A. export more than it imports. B. import more than it exports. C. reduce imports and exports by the same amount. D. increase imports and exports by the same amount.