In this graph, why is there a loss?
a. ATC is equal to D at q*.
b. P* is less than ATC at q*.
c. ATC is more than the MR at q*.
d. P* is equal to D at 0.
b. P* is less than ATC at q*.
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If tastes are homothetic, there exists a utility function (that represents those tastes) such that the indirect utility function is homogeneous of degree 1 in income.
Answer the following statement true (T) or false (F)
If a bank's liabilities are more sensitive to interest rate movements than are its assets, then
A) an increase in interest rates will reduce bank profits. B) a decrease in interest rates will reduce bank profits. C) interest rates changes will not impact bank profits. D) an increase in interest rates will increase bank profits.
More farmers have recently entered the corn industry. In addition there has been a technological advancement in the fertilizer industry providing corn farmers with a cheaper and a more effective fertilizer
In the market for corn, the effects these changes will have on the equilibrium price and quantity are A) price will increase, and quantity will decrease. B) price will increase, and the effect on quantity is indeterminate. C) price will decrease, and quantity will increase. D) price will decrease, and the effect on quantity is indeterminate.
"The money and resources currently being devoted to the War on Terrorism reduces the quantity of other goods that we are able to supply." This statement most clearly illustrates which of the following?
What will be an ideal response?