Exit from a market will stop when

A) accounting losses are zero.
B) the cost of capital is equal to the risk-free rate of return.
C) economic losses are zero.
D) none of these choices.

C

Economics

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Contractionary monetary policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________

A) higher; higher B) higher; lower C) lower; lower D) lower; higher

Economics

Refer to Figure 13-10. to answer the following questions

a. What is the profit-maximizing output level? b. What is the profit-maximizing price? c. At the profit-maximizing output level, how much profit will be realized? d. Does this graph most likely represent the long run or the short run? Why?

Economics