When the deficit increases under the concept of Ricardian Equivalence, what happens to savings in the private sector?

Which of the following costs always declines as output increases?

A) Average cost B) Marginal cost C) Fixed cost D) Average fixed cost E) Average variable cost

The economy's current rate of interest is 10 percent and a firm has $10,000 of owner-invested capital. Its total revenue is $5000 and the firm's explicit costs are $3500. From this we know that this firm's

A) accounting profit is $500. B) economic profit is $1,500. C) accounting profit is $1,500. D) economic profit is $5,000.