If a firm is earning negative accounting profits, it implies
a. That the firm's economic profits are zero
b. That the firm's economic profits are positive
c. That the firm's economic profits are negative
d. More information is needed to conclude about economic profits
c
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If supply is perfectly inelastic, a sales tax imposed on sellers is paid by
A) only the buyers. B) only the sellers. C) both the buyers and sellers. D) None of the above answers is correct.
If the percentage change in quantity demanded is less than the percentage change in price, we would say that over this range, demand is:
A) elastic. B) unit elastic. C) inelastic. D) perfectly elastic.
The period of the business cycle between the peak and the trough is the
A) recession. B) expansion. C) recovery. D) All of the above may fall between the peak and the trough.
Wine Merger In October, 2014, Vintners Global Resource's (VGR) agreed to purchase M.A. Silva. VGR is a leading manufacturer of glass bottles and packaging for wines and M.A. Silva is a manufacturer of premium natural corks. What is the expected effect of this merger on price-cost margins?