The accountants hired by the Brookside Racquet Club have determined total fixed cost to be $75,000 . total variable cost to be $130,000 . and total revenue to be $125,000 . Because of this information, in the short run, the Brookside Racquet Club should
a. shut down because staying open would be more expensive.
b. lower their prices to increase their profits.
c. stay open because shutting down would be more expensive.
d. stay open because the firm is making an economic profit.
a
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According to the classical model, workers chose a level of labor that equates the
a. real wage and marginal product of labor. b. nominal wage and marginal product of labor. c. the marginal utility of consumption and the marginal disutility of lost leisure. d. the marginal utility of consumption with the real wage.
In the simple aggregate expenditure model, the slope of the aggregate expenditure line depends on: a. interest rates
b. real gross domestic product. c. the price level. d. the marginal propensity to consume. e. the marginal propensity to save.