At a quantity above the equilibrium quantity, which of the following does not exist?
a. deadweight loss
b. underproduction

In the short run, suppose average total cost is a straight line and marginal cost is positive and constant. Then, we know that fixed costs must:

A) be declining with output. B) be positive. C) equal zero. D) We do not have enough information to answer this question.

Using a fixed exchange rate to undervalue your currency:

A. will increase your exports. B. makes imports very expensive for your citizens. C. will encourage capital flow to countries other than your own. D. All of these statements are true.