The balance of payments accounts record all of the following EXCEPT the country's

A) domestic investment.
B) international lending.
C) international borrowing.
D) change in official reserves.
E) international trading.

A

Economics

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Suppose the market price is $5, marginal cost is $4, and average total cost is $2. The perfectly competitive firm in that market is

A) earning $3 in economic profits per unit of output and is not maximizing profits. B) earning $2 in economic profits per unit of output and is maximizing profits. C) earning $1 in economic profits per unit of output and is not maximizing profits. D) none of the above: Insufficient information is given.

Economics

Diminishing marginal returns are the reason why some industries have positively-sloped long-run average cost curves

a. True. b. False.

Economics