If the price is below $130, what will the firm do (a) in the short run? (b) in the long run?


(a) shut down; (b) go out of business

Economics

You might also like to view...

In the figure above, in order to promote an efficient allocation of resources, the government could impose a tax equal to

A) zero. B) $250 per unit. C) $150 per unit. D) $100 per unit.

Economics

Which of the following are reasons to consider the protective role of the state in an economic framework?

a. The protection of rights is necessary for a functioning economy. b. The protection of rights comprises a large portion of the government spending. c. The protection of rights is necessary for international trade. d. Both a and b. d. Both a and c.

Economics

Sally lost her job when her company went out of business because of a recession. This is an example of:

a. frictional unemployment. b. structural unemployment. c. cyclical unemployment. d. technological unemployment.

Economics

Most of the change from 1991 to 2000 in U.S. net capital outflow as a percent of GDP was due to a(n)

a. decrease in U.S. investment. b. decrease in U.S. national saving. c. increase in U.S. investment. d. increase in U.S. national saving.

Economics