If a business is losing money in the short run, the owner will try to minimize
A. losses per unit of output.
B. total cost.
C. total losses.
D. output.
C. total losses.
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If the dependent variable Y is directly related to the independent variable X, this means that changes in X cause changes in Y
a. True b. False
Domestic firms operating abroad may find it economically beneficial to adopt environment-friendly standards because
A) foreign nations may be upset if firms do not use the environment-friendly technology. B) the least-cost strategy usually involves the adoption of one set of environment-friendly technology rather than multiple standards. C) they may be forced to replace the old technology whenever the foreign country experiences positive economic development. D) their environment-unfriendly technology may be replaced by foreign-based technology.
The table gives data on interest rates and investment demand (in billions of dollars) in a hypothetical economy.
Refer to the above table. Assume that the public debt is used to expand the capital stock of the economy and that, as a consequence, the investment-demand schedule changes from Id1 to Id2. At the same time, the interest rate rises from 3% to 4% as the government borrows money to finance the public debt. How much crowding out of private investment will occur in this case?
A. $0
B. $100 billion
C. $600 billion
D. $700 billion
In the figure above, an
A) efficient output results, but the firm incurs a loss per household which must be subsidized in some way. B) inefficient output results, though the firm covers its costs. C) efficient output results, though marginal costs exceed average total costs. D) inefficient output results because the firm cannot cover its costs. E) efficient output results because consumer surplus is maximized.