For a particular competitive firm, the minimum value of average variable cost (AVC) is $12 and is reached when 200 units of output are produced. For the same firm, the minimum value of average total cost (ATC) is $15 and is reached when 230 units of output are produced. Which of the following statements is correct?
a. In the short run, the firm will shut down if the price of its product is $14.
b. In the long run, the firm will shut down if the price of its product is $11.
c. For this firm, the minimum value of variable cost (VC) is $2,400.
d. If the firm's fixed cost (FC) amounts to $500, then the firm cannot earn a positive profit unless the price of its product exceeds $16.
b
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If the surplus in the capital account are greater than the deficit in the current account, then
a. the current account must be positive in the long-run. b. the current account must be negative in the long-run. c. exports must be less than imports. d. official reserve transactions must be negative.
Over the course of the 20th century, _____
a. federal government expenditures have grown less than state and local expenditures b. federal government expenditures have increased substantially as a percentage of GDP c. federal government expenditures remained fairly constant except during wartime d. federal government expenditures have always been higher than the expenditures of state and local governments.