Suppose that in a perfectly competitive market, the market price is $10. A firm in that market has marginal cost of $10, average total cost of $12, and it is producing 100 units. The firm is
A) earning $1,000 in total economic profits and is maximizing economic profits.
B) earning $200 in total economic profits and is maximizing economic profits.
C) earning zero total economic profits and is not maximizing economic profits.
D) incurring $200 in total economic losses and is minimizing economic losses.
D
Economics
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Why does the aggregate demand curve slope downward?
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For every 1 percentage point that the actual unemployment rate exceeds the natural rate, a 2 percentage point negative GDP gap occurs. This is a statement of:
A. Taylor's rule. B. Okun's law. C. Say's law. D. the Coase theorem.
Economics