Fixed costs are those costs which are:
A. Zero if the firm produces no output in the short run
B. Unchanging through time
C. Independent of the rate of output
D. Implicit to a competitive firm
C. Independent of the rate of output
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The reserves of financial institutions:
a. Are assets that financial institution's try to keep at the legal limit. b. Are made up mainly of government securities and high quality corporate bonds. c. Include the liability called "Borrowing from the central bank." d. None of the above is correct. e. Are the largest liability in a financial institution's balance sheet.
Sunk costs:
A. should be considered only when there is no information about marginal cost and marginal benefit. B. should be considered, but only when marginal cost is less than marginal benefit. C. are an essential part of economic decision making. D. are irrelevant to economic decision making.