If revenues are greater than total variable costs of production but less than total costs, a firm
A. earns a profit.
B. shuts down.
C. suffers a loss.
D. breaks even.
Answer: C
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Suppose the daily demand for Coke and Pepsi in a small city are given by QC = 90 - 100PC + 400(PP - PC) and QP = 90 - 100PP + 400(PC - PP), where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can for both Coke and Pepsi. What is the Nash equilibrium price for Pepsi?
A. $0.016 B. $0.45 C. $0.53 D. $0.38
An economy’s rate of _______________ growth is closely linked to the growth rate of its GDP per capita.
a. domestic b. business c. technology d. productivity
An example of income earned but not received is
A) welfare payments. B) Social Security payments. C) undistributed profits. D) a and b E) a, b, and c
The Fed decreases money supply. In this case, the time lag problem of monetary policy may
A. decrease the velocity of money in the short run. B. increase the velocity of money in the short run. C. increase real GDP in the short run. D. none of the above