Refer to Figure 15-15. Why won't regulators require that Erickson Power produce the economically efficient output level?
A) because at the economically efficient output level, the marginal cost of producing the last unit sold exceeds the consumers' marginal value for that last unit
B) because Erickson Power will earn zero profit
C) because there is insufficient demand at that output level
D) because Erickson Power will sustain persistent losses and will not continue in business in the long run
D
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Keeping a $20 bill in your purse to purchase a movie DVD when it comes out next month means that money functions as a
A) medium of exchange. B) unit of account. C) standard of deferred payment. D) store of value.
Interest can be defined as
A) the amount of funds loaned to a creditor. B) the participation of a shareholder in the operations of a firm. C) the return paid to owners of capital. D) the return above opportunity cost paid to owners of a firm.