A firm operating in a competitive market will stay in business in the long run so long as the market price is equal to or exceeds the firms average total cost; otherwise, the firm will shut down
Answer the following statement(s) true (T) or false (F)
Ans: True.
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Since 2008, the Fed has conducted a policy that involves direct lending to private firms. Those actions of the Fed are called
A) open market operations. B) quantitative easing. C) federal funds rate targeting. D) credit policies.
Fiscal policy aims to influence the overall health of the economy through changes in:
a. the money supply. b. government spending and tax rates. c. interest rates. d. international exchange rates. e. All of the above.
The short-run shutdown rule is to shut down if:
A. P > AVC. B. P < ATC. C. P > ATC. D. P < AVC.
Which statement is true?
A. An effective price ceiling is above equilibrium price and causes surpluses. B. An effective price ceiling is above equilibrium price and causes shortages. C. An effective price ceiling is below equilibrium price and causes surpluses. D. An effective price ceiling is below equilibrium price and causes shortages.