A firm that sells at a price below average cost is losing money.

The above figure shows the reaction functions for two pizza shops in a small isolated town. Firm B producing 100 pizzas and firm A producing 50 pizzas is NOT a Cournot equilibrium because

A) Cournot duopolists agree to share the market equally. B) firm B is not on its best-response function. C) firm A is not on its best-response function. D) neither firm is on its best-response function.

An American retailer sells dollars to obtain euros. It then uses the euros to buy ready-to-assemble furniture from Sweden. These transactions

a. increase U.S. net capital outflow because foreigners obtain U.S. assets. b. decrease U.S. net capital outflow because foreigners obtain U.S. assets. c. increase U.S. net capital outflow because the U.S. buys capital goods. d. decrease U.S. net capital outflow because the U.S. buys capital goods.