If AVC is $10 when P = MC, a firm
A) will have positive economic profits if price is greater than $10.
B) is producing too little output.
C) should shut down if price is less than $10.
D) is experiencing economies of scale.
C
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Which of the following is likely to shift the demand curve for carpenters leftward, assuming all else equal?
A) A fall in the wage rate of carpenters B) A fall in the price of the tools used by carpenters C) A rise in the wage rate of carpenters D) A rise in the price of the tools used by carpenters
A government budget deficit is financed by a combination of
A) saving rising relative to domestic investment and imports rising relative to exports. B) saving rising relative to domestic investments and exports rising relative to imports. C) domestic investment rising relative to saving and imports rising relative to exports. D) domestic investment rising relative to saving and exports rising relative to imports.