A firm's long-run supply curve
A. runs up its marginal cost curve starting at the break-even point.
B. runs up its marginal cost curve starting at the shutdown point.
C. is identical to the firm's entire marginal cost curve.
D. runs up the firm's marginal cost curve from the shutdown point to the break-even point.
A. runs up its marginal cost curve starting at the break-even point.
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Bonds ________ and stocks ________
A) always pay interest payments forever; always pay dividends forever B) have a fixed number of interest payments; have a fixed number of dividend payments C) may pay interest payments forever; have a fixed number of dividend payments D) have a fixed number of interest payments; may pay dividends forever
If a firm hires labor for $4,000, pays rent of $1,500, buys raw materials for $6,000 from another firm, earns profits of $500, and sells its output for $14,000, the value added by the firm is _____
a. $12,000 b. $8,000 c. $6,000 d. $2,000 e. $500
Common stock differs from preferred stock in that
a. common stock carries a guaranteed interest return b. preferred stock is only issued to the original creators of the corporation c. preferred stock is only issued to the largest investors in the corporation d. common stock carries the right to vote at shareholder meetings e. preferred stock carries the right to vote at shareholder meetings
The reason why firms in perfect competition do not advertise is because
a. their demand curves are all downward sloping and if they sell more it would have to be at a lower price b. they differentiate themselves, as with milk c. they are typically small in size and cannot produce for a wider market d. there is no entry into the industry e. there is no product differentiation among the goods produced