"A good business decision maker will never sell a product for less than it costs to produce." This statement is
a. true because diminishing returns always cause marginal costs to rise in the short run.
b. false because diminishing returns always cause fixed costs to rise in the short run.
c. true because it clearly differentiates between accounting profit and economic profit.
d. false because a business decision maker may be covering his current variable costs even though he has failed to cover all previous production costs.
D
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Consider the cash/spot and futures corn market transactions above. What are gross gains disregarding broker commissions and storage costs?
A. 10 cents per bushel B. 20 cents per bushel C. 30 cents per bushel D. Loss of 20 cents per bushel
After 1995 U.S. growth rate ________ and the European Rate ________
A) slowed down; speeded up B) speeded up; slowed down C) slowed down; slowed down D) speeded up, speeded up