If, at the output where marginal revenue equals marginal cost, price is between average total cost and average variable cost, a firm will continue to produce in the short run.
Answer the following statement true (T) or false (F)
True
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In deciding whether to study for an economics quiz or go to a movie, one is confronted by the idea(s) of
A. scarcity and opportunity costs. B. complementary economic goals. C. full production. D. money and real capital.
If the dollar appreciates, American consumers will buy more foreign goods and services
a. True b. False Indicate whether the statement is true or false
Assume the government decides to reduce spending in order to reduce the budget deficit, which it financed by borrowing in the real credit market. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real credit market with demand for real credit shifting to the right. b. Start the analysis in the real goods market with aggregate demand shifting to the left. c. Start the analysis in the real goods market with aggregate supply shifting to the left. d. Start the analysis in the real goods market with aggregate supply shifting to the right. e. Start the analysis in the real credit market with demand for real credit shifting to the left.
In some cases, specialization allows larger factories to produce goods at a lower average cost than smaller factories
a. True b. False Indicate whether the statement is true or false