You are considering buying a store. The storeowner gives you an estimate of the net profits of the store on a typical day. The owner has most likely given you the figures for the day when
a. Sales are low, costs are high
b. Sales are very close to costs
c. Sales are high, costs are low
d. All of the above
c
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When MFC < MRP, a firm in a competitive market will
A) stop hiring. B) hire more workers. C) earn fewer profits. D) layoff workers.
Refer to Figure 11.3. Assume aggregate demand is represented by AD2 and full-employment output is $5.8 trillion. If aggregate demand decreases by the amount of the AD Excess, equilibrium will occur at
A. Point a. B. Point b. C. Point c. D. Point d.
To adjust nominal GDP for a given year to obtain real GDP, it is necessary to divide nominal GDP by the price index (expressed in hundredths) for that year.
Answer the following statement true (T) or false (F)
The mid-point method of calculating elasticity is typically used because:
A. it is universally understood by all economists. B. it is a consistent way to estimate the elasticity of demand between two points on a demand curve, regardless of the direction of the movement. C. it is easier to calculate. D. the negative sign can then be ignored.