Refer to Figure 8.1. Which graph best represents a variable cost function?
A. A
B. B
C. C
D. D
B. B
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A competitive firm will shut down its operations in the short run when the market price falls below its
a. marginal revenue. b. marginal cost. c. average cost. d. average variable cost.
If there are 1000 different sellers of a particular good, and they are all charging exactly the same price, that the sellers are probably
A) colluding. B) making a profit. C) oligopolists. D) price takers. E) securing government assistance.
"OPEC should supply more oil so that the world's economies can grow more rapidly." This is an example of
A) a normative statement. B) a positive statement. C) a decision at the margin. D) OPEC overcoming scarcity.
A firm may find it optimal to stay in business in the short run even if total revenue does not cover total cost
a. True b. False