When total revenue minus total economic cost is equal to zero, the firm is
a. earning above-average economic profit.
b. earning the normal profit rate.
c. losing too much money to stay in business.
d. earning abnormally low profits.
B
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"Price gouging," or significant price spikes, are typical caused by
A) a significant increase in consumer demand. B) a significant increase in supplier greed. C) government attempts to impose price caps. D) no systematic relationship between supply and demand.
The assumptions underlying the simple linear regression model are:
a. the value of the dependent variable Y is postulated to be a random variable b. a theoretical straight-line relationship exists between X and the expected value of Y c. associated with each value of X is a probability distribution d. the disturbance term is assumed to be an independent random variable e. a through c f. b through d