If price is above average total costs, the firm
A) is earning positive profits.
B) is earning negative profits.
C) is making a normal rate of return on its capital investment.
D) may be earning a positive or negative profit depending upon costs.
Answer: A
Economics
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An individual's permanent income is
A) constant over time. B) the same as his current income. C) unaffected by tax changes. D) equal to his expected average income.
Economics
In the presence of asymmetric information, high-cost and low-cost customers are charged ?asymmetric prices.
Answer the following statement true (T) or false (F)
Economics