Some competitive firms are willing to operate at a loss, in the short run, because:
a. their average variable cost is less than the price.
b. their fixed costs are less than their current losses.
c. their average total cost is less than the price.
d. they do not attempt to maximize profits or minimize losses.
e. their revenues are at least able to cover their fixed costs.
a
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Monetarists advocate increasing the money supply by a constant rate year after year. True or False
In an English auction, the winner pays a price equal to ________
A) the value of the highest bid B) the value of the lowest bid C) his value for the good D) the value of the second-highest bid
By selling additional wheat, each U.S. wheat farmer
A) decreases his total revenue because the demand for his wheat is elastic. B) decreases his total revenue because the demand for his wheat is inelastic. C) increases his total revenue because the demand for his wheat is elastic. D) increases his total revenue because the demand for his wheat is inelastic.
Research into new technologies conveys neither negative externalities nor positive externalities
a. True b. False Indicate whether the statement is true or false