In the short run, when a firm stops producing it:
A. avoids paying fixed costs.
B. avoids paying variable costs.
C. can avoid earning profits less than zero.
D. must be that ATC is lower than market price.
B. avoids paying variable costs.
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Which of the following statements is most accurate about the Internet and tech companies?
A. The markets they operate in are monopolistically competitive. B. Firms that dominate one market will use large profits from that industry to put competitive pressure on rivals in other markets. C. The most dominant firms in each market only hold about 30 percent of the market share. D. Collusion among firms means that each industry is fully monopolized.
The supply curve of a one-of-a-kind original painting is:
A. relatively elastic. B. relatively inelastic. C. perfectly inelastic. D. perfectly elastic.
For this question, assume that policy makers are pursuing a fixed exchange rate regime. Now suppose that a reduction in stock market wealth causes a decrease in consumption. Which of the following will tend to occur in a fixed exchange rate regime?
A) a reduction in Y B) a reduction in the money supply C) no change in the domestic interest rate D) all of the above
An example of discretionary fiscal policy would be
A. an interest rate increase implemented to control inflationary pressures. B. the operation of the welfare state. C. the operation of the progressive federal income tax. D. a tax increase adopted to control inflationary pressures.