?If a firm shuts down in the short run and produces no output, its total cost will be:
a. ?equal to only explicit costs.
b. ?equal to the fixed cost.
c. ?equal to the variable cost.
d. ?equal to the sum of implicit and explicit costs.
e. ?equal to zero.
Ans: b. ?equal to the fixed cost.
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In the Cournot model of oligopoly, firms produce
a. the competitive quantity. b. the monopoly quantity. c. more than the monopoly quantity, but less than the competitive quantity. d. less than the monopoly quantity.
What is the price level?
What will be an ideal response?
After 1945, the national debt as a percent of GDP:
a. decreased slightly. b. decreased substantially. c. remained about the same. d. increased slightly. e. increased substantially.
Buying a newly issued bond implies:
a. borrowing money from a private bank. b. taking over the ownership of the issuing firm. c. lending money to the issuing firm. d. paying the price for a service rendered by the issuing firm. e. borrowing funds from international organizations.