If a firm is producing an output rate at which marginal cost is equal price, the firm
A) is maximizing profits.
B) should increase its output level.
C) should reduce its output level.
D) will not be covering its fixed cost.
A
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If most of the shocks that buffet the economy come from the output market shocks, then
A) fixed exchange rates are better than flexible exchange rates. B) flexible exchange rates are better than fixed exchange rates. C) which system is chosen is not important. D) fixed exchange rates are better than flexible exchange rates only in the short run. E) flexible exchange rates are better than fixed exchange rates only in the short-run.
Which of the following will reduce the risk accompanying equity (stock) investments?
a. the purchase of shares of a mutual fund that holds the stocks of many diverse corporations b. the purchasing and holding of equities over a lengthy period of time c. the purchase of shares in firms doing business in a wider variety of industries and markets d. all of the above