A firm encounters its "shutdown point" when:
A) average total cost equals price at the profit-maximizing level of output.
B) average variable cost equals price at the profit-maximizing level of output.
C) average fixed cost equals price at the profit-maximizing level of output.
D) marginal cost equals price at the profit-maximizing level of output.
B
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A movement upward and to the left along the money demand curve is caused by: a. an increase in the interest rate
b. a decrease in the interest rate. c. a decrease in real GDP. d. an increase in real GDP. e. an increase in the average price level.
The investors who bought mortgage-backed securities just before the housing bubble burst:
A. were not concerned about the original mortgage. B. were all very comfortable assuming high-risk assets. C. were not confident in the rising home value underlying each mortgage. D. knew exactly what they were buying.