In the short run, a firm attempting to minimize losses:
a. must leave the industry in order to maximize opportunity costs.
b. will produce as long as marginal cost equals marginal revenue.
c. will produce as long as total revenue exceeds total variable cost.
d. will produce as long as total revenue exceeds total fixed cost.
e. will produce as long as competitors continue to produce.
c
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The existence of a ________ means that the interest rate on a two-year bond will exceed the average interest rate on two successive one-year bonds
A) risky asset. B) securitization premium. C) term structure. D) risk premium.
Probably the most important source of efficiency in production is
a. investing in more capital goods. b. consuming rationally. c. expanding the production possibilities frontier. d. increasing inputs of energy and raw materials. e. the specialization of labor.
If Sally Smith creates VCU1 by playing an online game, the effect is to cause the nation's:
a. Monetary base to rise. b. M2 money supply to fall. c. M2 money multiplier to fall. d. Monetary base to remain the same.
Economists call the pursuit of a transfer of wealth through government at someone else's expense:
A. the paradox of voting. B. adverse selection. C. rent-seeking behavior. D. the benefits-received principle.