The normal rate of return on equity capital is also known as
a. the explicit cost of capital.
b. the marginal cost of capital.
c. economic profit.
d. the opportunity cost of capital.
D
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Explain why a firm should continue to operate in the short run so long as market price is greater the the firm's average variable cost at the profit-maximizing level of output
What will be an ideal response?
What explains the rise in income in the U.S. between 1900 and 2013?
A) business cycles B) inflation C) recessions D) depressions E) none of the above
A healthy economy would be characterized by a relatively ____ unemployment rate and a relatively ____ labor force participation rate
a. low; low b. low; high c. high; low d. high; high
Suppose nominal GDP equaled $10,988 billion while the M2 money supply was $6,063 billion. What was the velocity of the M2 money stock?
A. 0.45 B. 0.55 C. 1.81 D. 2.36