The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive. 
In the graph above, the average variable cost curve is labeled ________, the average total cost curve is labeled ________, and the marginal cost curve is labeled ________.
A. C; B; A
B. C; A; B
C. B; C; A
D. A; B; C
Answer: A
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Which of the following measures is used by the Justice Department to evaluate the competitive effects of proposed mergers?
A) The Lerner Index. B) The eight-firm concentration ratio for an industry. C) The four-firm concentration ratio for an industry. D) The Herfindahl-Hirschman Index.
A closed economy is a national economy that
A) doesn't interact economically with the rest of the world. B) has a stock market that is not open to traders from outside the country. C) has extensive trading and financial relationships with other national economies. D) has not established diplomatic relations with other national economies.
An exporter can hedge against the possible decline in a foreign currency by purchasing
A) put options on the currency. B) call options on the currency. C) the currency on the spot market. D) currency on forward contracts.
At a firm's profit-maximizing level of output, its price is $200 and its short-run average total cost is $225 . The firm
a. has a profit of $25 per unit of output. b. should shut down if its short-run average fixed cost is less than $25. c. has a loss of $100 per unit of output. d. should shut down if its short-run average variable cost exceeds $25.