A fair-returns price is a price set at:
A) marginal cost.
B) average fixed cost.
C) average total cost.
D) average variable cost.
C
You might also like to view...
Suppose a bank has the following balance sheet:
Assets Liabilities Reserves $14,000 Deposits $100,000 Loans $90,000 Net Worth $4,000 If the required reserve ratio is 10 percent, how much excess reserves does the bank have? What is the maximum amount that the bank can expand its loans?
Which of the following examples shows Adam Smith’s “invisible hand”?
a. Millions of people through buying and selling adjust how resources such as steel are used. b. The Federal Trade Commission uses consumer protection laws to adjust resource allocation. c. The five largest banks adjust loan interest rates, which affect the free market. d. Five countries form a trade agreement that spurs the economy in each country.