At the short-run break-even point, the firm is
A) earning zero accounting profit.
B) losing money.
C) earning zero economic profit.
D) ready to shutdown.
Answer: C
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Why do firms reorganize and change their structural forms?
If an economy produces 3,000 units of output with a money supply of $500 and a velocity of 9, we know the price level must be:
A. $1.50. B. $2. C. $4.50. D. $9.
If the Fed lowers the discount rate at the same time it conducts an open market sale, it follows that
A) the money supply will fall. B) the money supply will rise. C) the money supply will remain unchanged. D) cash leakages will rise. E) There is not enough information to answer this question.
Based on Moe’s Production Function with One Variable, Labor, what can we conclude about the quality of Moe’s workers?
a. The quality of Moe’s workers cannot be determined from this table.
b. The first two workers Moe’s added were the highest quality hires.
c. The last two workers added were relatively low quality.
d. The second worker Moe’s hired is his best employee.