When the Fed allows the monetary base to respond to the purchase or sale of domestic currency in the foreign exchange market, the process is called

A firm can minimize cost by

A) picking the bundle of inputs where the lowest isocost line touches the isoquant. B) picking the bundle of inputs where the isoquant is tangent to the isocost line. C) picking the bundle of inputs where the last dollar spent on one input gives as much extra output as the last dollar spent on any other input. D) All of the above.

If market price is greater than the minimum of AVC but below the minimum of AC, then

A) the firm will shut down. B) revenue covers variable costs and some of the fixed costs and profit is positive. C) revenue covers variable costs and some of the fixed costs, although profit is negative. D) economic profit is zero.