Suppose you were working for Richstone's bakery and calculating whether the bakery was making a profit, considering the recent increase in rent. You have data for price (P), MR, ATC, MC, AVC, at the quantity of 1,000 breads a day. The firm's total profit is calculated by
a. P – AVC
b. P – ATC
c. P – MC
d. (P – ATC)Q
e. TR – TVC
D
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A negative income tax program provides a simple way to assist the unemployed
a. True b. False Indicate whether the statement is true or false
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model? a. Real GDP rises and nominal value
of the domestic currency falls. b. Real GDP falls and nominal value of the domestic currency remains the same. c. Real GDP rises and nominal value of the domestic currency remains the same. d. Real GDP rises and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
If prices have increased since the base period, then
A) real GDP is larger than nominal GDP.
B) real GDP can no longer be compared to nominal GDP.
C) real GDP is equal to nominal GDP.
D) real GDP is smaller than nominal GDP.
E) there is no way to adjust nominal GDP so that it equals real GDP.
A rightward shift of the investment demand curve will:
A. Shift the investment schedule downward B. Shift the investment schedule upward C. Decrease the quantity of investment D. Decrease the real rate of interest