In the above figure, which of the following statements is FALSE if the firm is operating at output level Q2?
A) The output is equivalent to an unregulated monopolist.
B) Economic profits are positive.
C) The price is lower than at an equivalent firm forced by regulators to charge ATC pricing.
D) Average costs would be lowered by expanding output.
C
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The supply curve indicates
a. the price that will be charged for each unit of a good or service b. how much people are willing to pay for a good or service c. the minimum price some seller must receive in order to supply each unit of a good or service d. the value of each unit of a good or service e. the maximum price some seller can expect to receive from supplying each unit of a good or service
Answer the following statements true (T) or false (F)
1) Permanent tax reductions are more likely to be expansionary than temporary tax reductions. 2) As measured by the cyclically adjusted budget, the U.S. government engaged in a contractionary fiscal policy in 2005 and 2006. 3) Financing wartime expenditures by increasing internally held public debt permits a nation to defer a part of the economic cost of war. 4) It is more meaningful economically to measure the public debt relative to the GDP than to measure it in absolute terms.