Using a PPC can help to increase a company's
a. efficiency
b. underutilization
c. losses
d. employee theft
Ans: a. efficiency
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If a firm experiences diminishing returns its marginal product must be negative
Indicate whether the statement is true or false
Total fixed cost is frequently referred to as
a. overhead. b. depreciation. c. opportunity cost. d. marginal cost.
When a person holds money, they give up
A) the pleasure associated with spending money. B) the pleasure associated with saving money. C) the interest that could have been earned if the money had been changed into an interest-bearing asset. D) nothing, since the person can always use the money to buy goods or services or interest-bearing assets.
What happens if the price received by a perfectly competitive firm causes it to produce at a quantity where price equals average cost?
a. The firm earns a profit. b. The firm earns no profit. c. The firm earns losses. d. The firm earns little profit.