When the market price has fallen below a firm's ATC but is above its AVC, in the short run, the firm:
A. then MC must be greater than MR.
B. can minimize its losses by staying open.
C. is earning positive profits.
D. then a firm is covering all of its fixed costs, but not all of its variable costs.
B. can minimize its losses by staying open.
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Economists use the word "capital" to mean
A) purchases in the market for stocks and bonds. B) the tools, instruments, and other produced goods used to produce goods and services. C) the workers that firms employ to produce goods and services. D) the funds that firms use to buy and operate their businesses. E) people's skills and talents.
Indirectly, overvalued exchange rates in Latin America caused
A) a capital shortage in agriculture. B) a capital shortage in industry. C) a capital abundance in agriculture. D) a growth in incomes in rural areas. E) an increase in competitive pressures faced by industry.