The MC of a firm:
A. crosses AVC and ATC at its minimum.
B. crosses TC at its minimum.
C. crosses MR at the above the profit-maximizing level of output.
D. is a horizontal line indicating that costs are constant in perfect competition.
Answer: A
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Disney and Fox must decide when to release their next films. The revenues received by each studio depend in part on when the other studio releases its film. Each studio can release its film at Thanksgiving or at Christmas
The revenues received by each studio, in millions of dollars, are depicted in the payoff matrix above. Which of the following statements CORRECTLY describes Disney's strategy given what Fox's release choice may be? A) If Fox chooses a Thanksgiving release, Disney should choose a Christmas release. B) If Fox chooses a Christmas release, Disney should choose a Thanksgiving release. C) Disney should release on Thanksgiving regardless of what Fox does. D) Both answers A and B are correct.
What is the present value of an infinite stream of annual payments of $10,000 per year if the first payment is received one year from today? Assume the interest rate is 10 percent
a. $100,000 b. $1,000,000 c. $10,000,000 d. $1,000,000,000
Rent depends on what the potential users of the land are willing to pay for it.
Answer the following statement true (T) or false (F)
The four components of aggregate expenditures are:
A. consumption, investment, government spending, and net exports. B. consumption, interest payments, government spending, and net exports. C. consumption, imports, government spending, and net exports. D. consumer durables, investment, government spending, and net exports.