If, at its profit-maximizing output level, the price of the good is less than average variable cost, the firm should shut down immediately
Indicate whether the statement is true or false
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Techniques for estimating demand curves using direct observations from the marketplace are part of a family of statistical techniques referred to as:
a. legal studies. b. Econometrics. c. policy analysis. d. Economic expansion.
To derive a market demand curve from individual demand curves, it would be necessary to:
A. multiply the quantities demanded on each demand curve at each price to find the market quantity demanded at each price. B. take the demand curve that is the furthest to the right as the market demand curve. C. take the maximum quantity of each demand curve as the market quantity demanded at each price. D. sum the curves horizontally, adding quantities demanded at each price.
The idea that if enough consumers cut back on their use of a product it induces other consumers to do the same is referred to as
A. non-dynamic market feedback. B. negative market feedback. C. elicit market feedback. D. positive market feedback.
If the Federal Reserve targets the money supply, and the money demand curve shifts to the left, then the Fed
A) can maintain the money supply target, but at a lower interest rate. B) can maintain the money supply target with no change in the interest rate. C) can maintain the money supply target, but at a higher interest rate. D) cannot maintain the money supply target.