At an output of 6, ATC = $30, MC = $25, MR = $25. At that output the firm is
A. maximizing its profits.
B. minimizing its losses.
C. operating at its break-even point.
D. operating at its shutdown point.
B. minimizing its losses.
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When the real interest rate falls, the consumption function
A) does not shift and there is a movement downward along the consumption function. B) shifts upward. C) does not shift and there is a movement upward along the consumption function. D) shifts downward. E) does not shift and there is no movement along the consumption function.
In the early 2000s, laws requiring banks and mortgage brokers to disclose the terms of home loans:
A. were an example of how the government can act to solve the moral hazard problem. B. reduced statistical discrimination in the home mortgage market. C. prevented Americans from entering into mortgage contracts that they did not understand. D. were so numerous and detailed that borrowers didn't read or understand the information the companies had disclosed.
Over a given period of time, if exports are greater than imports, the result is
A. An embargo. B. A trade war. C. A trade surplus. D. A trade deficit.
Which of the following short-run outcomes for monopolistic competition is NOT possible?
A. P > ATC. B. P = MR = MC. C. P > MC > ATC. D. P = ATC.