If a firm is operating at an output level where losses are minimized, the firm
A) has no incentive to stay in the industry.
B) is better off exiting the industry.
C) is maximizing profits.
D) will shut down.
C
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The main goal of the Fair Trade Commissions Act was to
A. limit mergers and price-fixing contracts. B. make deceptive practices illegal. C. limit competition among small firms. D. make restraint of trade illegal.
Quantitative easing involves policies that are designed to:
A. directly increase the money supply by a certain amount. B. indirectly increase the money supply by decreasing interest rates. C. directly increase aggregate demand through increased government spending. D. indirectly increase aggregate demand through decreased taxes.
Corporate profits and proprietors' profits in 2009 constituted about ___% of national income.
Fill in the blank(s) with the appropriate word(s).
Suppose that a perfect-maximizing monopolist operates with a horizontal marginal cost curve and no fixed costs. Which of the following would NOT be represented as part of the area between its demand curve and marginal cost curve?
A) total costs B) economic profits C) consumer surplus D) deadweight loss