A fruit packing plant usually shuts down for three months each year. During that period, what happens to its costs?
a. Its fixed costs are greater than zero.
b. Its variable costs are greater than zero.
c. Its total costs are zero.
d. Its fixed costs are zero.
A
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Which of the following statements is true?
A) In a competitive market, the invisible hand encourages the movement of resources from more productive uses to less productive uses. B) In a competitive market, firms in the long run tend to earn positive economic profits. C) Competitive equilibrium provides incentives for entrepreneurs to shift their resources from unprofitable industries to profitable ones. D) At the competitive equilibrium, production occurs at the point of maximum average total cost.
Use the following data to calculate equilibrium real GDP: C= .75Y, I = $2 trillion, G=$1 trillion and NX = -$0.5 trillion
What will be an ideal response?
If two economists completely agree about the magnitude of employment effects of a proposed change in government policy, but disagree about whether the change is a good idea. The difference in opinion
a. must be normative in nature b. is both positive and normative in nature c. is more likely to be normative than positive d. is more likely to be positive than normative e. would be neither positive nor normative in nature
If an increase in the price of accordions does not change total revenue from accordion sales, we can infer that demand for accordions is inelastic.
Answer the following statement true (T) or false (F)