As long as average revenue remains above average total cost:
A. the firm will be making profits.
B. price will be greater than average total cost.
C. total revenue will be higher than total cost.
D. All of these are true.
Answer: D
You might also like to view...
Which of the following explains why frictional unemployment exists in an economy?
A) It arises because job search is completely a supply side phenomenon in the labor market, and firms make no attempts to advertise for the vacancies they have. B) It arises because most of the workers shirk at work. C) It arises because it takes time for an unemployed worker to find a firm with a well-matched job vacancy. D) It arises because unemployment benefits encourage workers not to look for jobs.
Which of the following will be most likely to cause the production possibilities curve for a country to shift inward?
a. an increase in the labor force b. an increase in unemployment c. development of an improved technological method of production d. a decrease in the stock of physical capital
The downward-sloping portion of the marginal cost curve is the only portion that matters in production
Indicate whether the statement is true or false
The natural rate of unemployment
a. is the least controversial of the Fed's economic barometers b. has remained constant over periods of varying rates of inflation c. is defined as the lowest level of unemployment that can be sustained without putting inflationary pressures on the economy d. in the U.S. is thought to be twice the level of Europe's natural rate of unemployment e. was a mandate of the Humphrey-Hawkins Act