In the long run, a firm will exit a competitive industry if
a. total revenue exceeds total cost.
b. the price exceeds average total cost.
c. average total cost exceeds the price.
d. Both a and b are correct.
c
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A perfectly competitive firm shuts down in the short-run when the market price is less than the average variable cost
a. True b. False Indicate whether the statement is true or false
The Robinson-Patman Act of 1936 amended the: a. Sherman Act
b. Clayton Act. c. Federal Trade Commission Act. d. Wagner Act.
The law of demand says that
a. the customer is always right b. quantity supplied equals quantity demanded c. price and quantity supplied are inversely related d. price and quantity demanded are inversely related e. income and quantity demanded are directly related
One consequence of unemployment is that:
A. the time and skills of the unemployed are not being put to use. B. it can create uncertainty about the future. C. some productive potential of the economy is being wasted. D. All of these are consequences of unemployment.