A firm will shut down in the short run when
A) price is below average total costs at all possible rates of output.
B) price is below average variable costs at all possible rates of output.
C) price is below marginal cost at all possible rates of output.
D) it is making a loss.
B
You might also like to view...
Consider the income and substitution effects corresponding to an increase in the price of X. Which of the following are not possible?
a. The substitution effect on X is positive and the income effect is negative. b. The substitution effect on X is positive and the income effect is negative. c. The substitution effect on Y is negative and the income effect on X in negative. d. The income effect on both goods is positive.
With only two goods, if the income effect is in the same direction as the substitution effect then the good is
a. normal b. inferior but not Giffen c. Giffen d. There is not enough information to answer.
A company manufacturing shirts for a department store decides to create a new style of cotton shirt. The company would most likely produce shirts that will
A. sell at a high price. B. be less costly to create. C. use a nonrenewable resource. D. satisfy the wants and needs of consumers.
The Sherman Antitrust Act of 1890
A. limited mergers that would substantially lessen competition or tend to create a monopoly. B. made tying contracts illegal. C. banned price discrimination. D. made illegal every conspiracy in restraint of trade or commerce among the several states.