Marty's Bird House suffers a short-run loss. Marty can reduce his loss below the amount of his total fixed costs by continuing to produce if his revenue
A) exceeds his implicit costs.
B) exceeds his nonmonetary opportunity costs.
C) exceeds his variable costs.
D) exceeds his marginal costs.
Answer: C
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Currencies of different countries are traded in the so-called
A) money market. B) foreign exchange market. C) capital account. D) current account.
When the Lorenz curve lies above the diagonal,
a. the poorest 20 percent of the population receives more than 20 percent of income b. the richest 20 percent of the population receives more than 20 percent of income c. every quintile receives identical incomes d. it indicates that total income has increased even though the distribution of income remains unchanged e. it is incorrectly drawn because no Lorenz curve can lie above the diagonal
Gains of trade are possible for two countries if they have:
A) different opportunity costs. B) equal opportunity costs. C) different political systems. D) identical political systems.
The aggregate supply and aggregate demand model is used to explain the:
A. overall health of the economy. B. way that unemployment may affect output, but not how price level does. C. overall effect of large markets within the economy. D. interaction of all sellers and all buyers within a particular market.