Minimizing average total cost always leads to the maximization of total profit.
Answer the following statement true (T) or false (F)
False
Profit is maximized at the output level where MR is equal to MC, not necessarily at the minimum ATC.
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If U.S. interest rates rise while foreign interest rates remain unchanged,
A. GDP will not change since the shift in aggregate supply cancels the positive effects on aggregate demand. B. the dollar will depreciate and thus reduce prices and output. C. foreign capital will be attracted to the United States and the dollar will appreciate. D. net exports will increase and the economy will expand.
Which of the following is not always correct for a closed economy?
a. National saving equals private saving plus public saving. b. Net exports equal zero. c. Real GDP measures both income and expenditures. d. Private saving equals investment.
An example of an intermediate good would be:
A. a bag of Uncle Ben's rice sold to consumers. B. the rice used to make Chex cereal. C. a bag of Quaker's rice cakes sold to consumers. D. All of these are intermediate goods
Do you agree or disagree with the statement that: “A monopolist always charges the highest possible price.” Explain
What will be an ideal response?