If Microsoft is earning a rate of return greater than the return necessary for the business to continue operations in the long run, then
A. total costs exceed total revenue.
B. the normal rate of return is zero.
C. the firm is earning an economic profit.
D. total costs exceed a normal rate of return.
Answer: C
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The money demand curve will shift to the left if:
A. the price level increases. B. the nominal interest rate increases. C. the nominal interest rate decreases. D. real income decreases.
When the exchange rate appreciates in the short run and then depreciates to its original level in the long run, it implies that the domestic money supply has:
a. temporarily risen. b. permanently risen. c. temporarily fallen. d. permanently fallen.
If the percentage change in quantity supplied is 5%,and the percentage change in price is 10%, then the supply for the good is
A. elastic. B. inelastic. C. perfectly inelastic. D. unit elastic.
Answer the following statements true (T) or false (F)
1) Refer to the diagram for a nondiscriminating monopolist. At output M total cost will be 0CHM.
2) Refer to the diagram for a nondiscriminating monopolist. From society's point of view it would be desirable to have the monopolist produce a larger output than M.
3) Refer to the diagram for a nondiscriminating monopolist. If the government regulates the monopolist so that it charges the "fair return" price, the monopolist will produce output N.
4) Refer to the diagram for a nondiscriminating monopolist. If the government regulates the monopolist so that it charges the socially optimal price, the monopolist w