If a firm is currently equating MR and MC and product price = $24, AVC = $22, and ATC = $26, then in the long run this firm:
A. will continue to operate at a loss.
B. will earn a positive profit.
C. will go out of business.
D. should decrease price.
Answer: C
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Suppose voter preferences over a public good funded through a proportional income tax are single peaked. If everyone has the same tastes and the public good is a normal good, then ideal points for higher income individuals will lie to the right of ideal points of lower income individuals.
Answer the following statement true (T) or false (F)
Leontief showed that U.S. exports were capital intensive relative to U.S. imports
Indicate whether the statement is true or false
A stockholder’s investment is usually riskier than a bondholder’s.
Answer the following statement true (T) or false (F)
Which of the following people would be officially counted as unemployed?
a. A person who works only 5 hours per week for pay. b. A full-time college student who chooses not to have a paying job. c. A family member who works 20 hours per week without pay. d. A jobless high-school graduate who is actively looking for work.