Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Currently in sector X, price is
A. equal to average cost.
B. greater than average cost.
C. less than average cost.
D. More information is needed to answer the question.
Answer: A
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A firm is thinking of hiring an additional worker to their organization who they believe can increase total productivity by 100 units a week. The cost of hiring him or her is $1500 per week. If the price of each unit is $20,
a. the MR of hiring the worker is $2000 b. The MC of hiring the worker is $1500 c. The firm should hire the worker since MB>MC d. All the above
A "company town" is one in which:
A. all employees of a company live within its confines. B. a single company employs the great majority of people in a town and owns most structures in the town. C. the company directs most town business by assisting local government. D. a single company directly regulates and monitors all town activity.
Competitive firms decide how much output to sell by producing output until the price of the good equals
a. marginal product. b. the value of marginal product. c. marginal cost. d. marginal profit.
When the Fed engages in contractionary monetary policy, which of the following happens after the money supply is decreased?
a. RGDP increases. b. The quantity of services demanded increases. c. Interest rates increase. d. Investment is less costly.