In the short run, a monopoly should shut down whenever
a. marginal revenue exceeds marginal cost
b. price is less than average total cost
c. total revenue is less than total cost
d. price exceeds the ratio of marginal cost to average cost at the optimal output
e. price is less than average variable cost everywhere
E
You might also like to view...
A high four-firm concentration ratio implies
A) an absence of product differentiation. B) a presence of product differentiation. C) an absence of competition. D) a presence of competition.
Refer to Figure 3-4. If the price is $20,
A) there is a surplus of 600 units. B) quantity demanded is zero. C) there is a shortage of 600 units. D) the market is in equilibrium.
Which of the following is not one of the four main categories of spending identified by John Maynard Keynes?
A) government purchases B) transfer payments C) planned investment D) consumption
________ is the process of researching and developing profitable new products and services by financial institutions
A) Financial engineering B) Financial manipulation C) Customer manipulation D) Customer engineering