Refer to Figure 12-7. If the market price is P3 the firm
A) will earn enough revenue to cover its variable costs but not its fixed costs.
B) will break even.
C) will make a profit.
D) will produce a quantity of Q1.
C
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In reality, AD rarely ________; however, the economy performs as though it does when it ________
A) decreases; fluctuates with potential GDP B) increases; decreases at a pace much slower than potential GDP C) stagnates; increases at a pace much faster than potential GDP D) decreases; increases at a pace much slower than potential GDP E) decreases; increases at a pace much faster than potential GDP
What explains the increase in supply and fall in price of HDTVs during from 2010 to 2015?
A) Technological innovations that reduced the cost of production B) Fewer producers in the industry C) A fall in demand for HDTVs as more people turned toward superior substitutes D) None of the above.