In the long run a firm will choose a plant size that has the:
A. Minimum of average fixed costs
B. Capacity to produce the largest quantity of the product
C. Minimum average total cost of producing the target level of output
D. Maximum level of resource use per unit of the total product of output
C. Minimum average total cost of producing the target level of output
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The Economic Freedom Index includes which of the following measures of economic freedom within a nation?
A) Levels of economic regulation B) Freedom of pricing C) Stability of monetary policy D) Taxation levels E) All of the above.
Other things remaining the same, the higher the current exchange rate, the larger is the expected profit from buying dollars
Indicate whether the statement is true or false
If the price of a product is $10 per unit and the variable cost per unit is $5, the firm is making a profit.
Answer the following statement true (T) or false (F)
Which of the following best describes the relationship between the velocity of money and the demand for money?
a. The demand for money is not related to the velocity of money. b. When the demand for money increases, the velocity of money increases. c. The demand for money must be stable for the velocity of money to increase. d. When the demand for money declines, the velocity of money increases.