Assume at the firm's profit-maximizing level of output P = AVC. In this case, the firm will be:
A) earning a positive economic profit.
B) earning economic profit = 0.
C) incurring an economic loss.
D) breaking even.
C
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Banks keep ________ of deposits as reserves because on a typical day withdrawals are ________ deposits
A) more than 100%; much greater than B) exactly 100%; about the same as C) less than 100%; about the same as D) less than 100%; much greater than
If the exchange rate is .60 British pounds = $1, a bottle of ale that costs 3 pounds costs
a. $1.80. b. $4.80. c. $5. d. None of the above is correct.
A static model is postulated when:
A. a change in the independent variable at time ‘t' is believed to have an effect on the dependent variable at period ‘t + 1'. B. a change in the independent variable at time ‘t' is believed to have an effect on the dependent variable for all successive time periods. C. a change in the independent variable at time ‘t' does not have any effect on the dependent variable. D. a change in the independent variable at time ‘t' is believed to have an immediate effect on the dependent variable.
If AVC is $10 when P = MC, a firm
A) will have positive economic profits if price is greater than $10. B) is producing too little output. C) should shut down if price is less than $10. D) is experiencing economies of scale.