Will a perfectly competitive firm ever produce in the short run even though it is incurring an economic loss?
What will be an ideal response?
Yes, a perfectly competitive firm will continue to produce even though it is suffering an economic loss if the price exceeds the minimum average variable cost. In this case, even though the firm has an economic loss, if it shut down, its economic loss would be larger.
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U.S. net export spending rises when
A) the inflation rate is higher in the United States relative to other countries. B) the value of the U.S. dollar increases relative to other currencies. C) the price level in the United States rises relative to the price level in other countries. D) the growth rate of U.S. GDP is slower than the growth rate of GDP in other countries.
The Federal Open Market Committee consists of:
a. the 12-member Board of Governors. b. seven members of the Board of Governors and five district presidents. c. the president of the New York district bank and the members of the Council of Economic Advisers. d. the chairman of the Board of Governors and five district presidents. e. seven members of the Board of Governors and a nine-member board of directors of the district banks.