If the price is greater than the average variable cost, the firm should produce
A. where ATC is minimized.
B. where AVC is minimized.
C. zero.
D. where MC=MR.
Answer: D
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Macroeconomics is the branch of economics that focuses on:
a. broad issues such as growth, unemployment, inflation, and trade balance. b. the actions of particular agents within the economy, like households, workers, and business firms. c. the means of production (resources and businesses) that are owned and operated by private individuals or groups of private individuals. d. workers or firms, and whether they are well suited within the overall production process.
Suppose a retail store was offering 10 percent off list prices on all goods. The benefit of the 10 percent savings is:
A. negatively related to the list price of the good. B. unrelated to the list price of the good. C. positively related to the list price of the good. D. zero since costs and benefits shouldn't be measured proportionally.
When economists say that nations trade with other nations, they mean that ______.
a. the national governments establish markets for trade b. people of a nation trade with people of other nations c. all international trade passes through the government d. government-owned industries trade with each other
Which of the following would increase the level of planned real investment?
A. an expectation of higher future costs B. an expectation of higher future profits C. an increase in the interest rate D. an increase in business taxes