A competitive firm is producing 1,000 units of output with average total cost equal to $35 and marginal cost equal to $40 . Can the market in which this firm operates be in a long-run equilibrium? Briefly explain
No, the market cannot be in a long-run equilibrium because average total cost and marginal cost must equal one another in such an equilibrium.
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Refer to Table 2-5. If the two countries specialize and trade, who should export cell phones?
A) Estonia B) They should both be importing cell phones. C) There is no basis for trade between the two countries. D) Finland
In fiscal year 2001, the U.S. government ran a surplus of about $127 billion. In fiscal year 2002, the government ran a deficit of $159 billion. Other things the same, this change would be expected to have
a. decreased interest rates and investment. b. decreased interest rates and increased investment. c. increased interest rates and investment. d. increased interest rates and decreased investment.