In the short run, a firm will
A) not produce if its total revenue does not cover its total cost.
B) produce and incur an economic loss if its total revenue covers its total variable cost but not its total cost.
C) produce and break even if its total revenue covers its total fixed cost but not its total variable cost.
D) produce and earn an economic profit if its total revenue is equal to its total cost.
B
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Under a fixed exchange rate regime, suppose there is an increase in housing wealth that causes an increase in consumption. This wealth-induced increase in consumption will cause
A) an increase in investment. B) a reduction in net exports. C) an increase in imports. D) all of the above E) none of the above
In an iron and steel plant with 4 blast furnaces, 40 laborers produce 160 tons of pig iron every day. The labor productivity in the firm is equal to _____
a. 0.25 ton per worker b. 4 tons per worker c. 10 tons per worker d. 0.1 ton per worker e. 40 tons per worker