In the long run, a firm should exit when:
A) price is less than average total cost.
B) price is equal to average total cost.
C) price is equal to marginal cost.
D) price is more than marginal cost.
A
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Lulu purchased a security that promises to pay $50 twice a year from January 15, 2012 to January 15, 2016 and then pay $1,000 on January 15, 2016. The security is a debt to the company that issued it. The security is a
A) net investment to the company that issued it. B) share of stock. C) depreciating asset. D) physical capital. E) bond.
In the long run, the inflation rate
A) must be equal to the natural unemployment rate. B) can take on any value. C) is equal to the natural inflation rate. D) is zero. E) cannot be negative.
Which of the following is considered to be an entrepreneur?
A. A self-employed person B. An MBA graduate hired by a firm to be its CEO C. A production-line worker D. A customer of a firm
As long as price exceeds AVC, the firm is better off
A) continuing production. B) closing. C) raising its price. D) cutting price.