Refer to Figure 12-7. If the market price is P1
A) The firm will experience a loss since price is less than ATC.
B) The firm will experience a loss and raise its price to P2. The firm will then break even.
C) The firm may make a profit if it can increase the demand for its product.
D) The firm will break even by producing a quantity of Q2.
A
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If the real interest rate is lower than the equilibrium real interest rate:
A) the quantity of credit demanded equals the quantity of credit supplied. B) the quantity of credit demanded falls short of the quantity of credit supplied. C) the quantity of credit supplied falls short of the quantity of credit demanded. D) interest rates tend to fall further.
The largest component of output growth in the U.S. is
a. labor productivity growth. b. capital growth c. labor growth. d. knowledge growth. e. None of the above.