A firm will ________ in the short run if variable costs exceed revenues.
A. break even
B. shut down
C. produce at a loss
D. earn a profit
Answer: B
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"The national debt is too large. The government must stop spending so much money." This statement is
a. a normative statement. b. a positive statement. c. a testable hypothesis. d. both b and c.
Every individual has a labor supply curve in each market where there is a possible use for his/her labor
a. True b. False
A decrease in the price of a good would
a. shift the supply curve for the good to the left. b. give producers an incentive to produce more to keep profits from falling. c. increase the quantity demanded of the good. d. increase the supply of the good.
Firms that can effectively price discriminate can increase profitability when they engage in:
A. predatory pricing. B. Any of the statements associated with this question are correct. C. limit pricing. D. strategies that raises rivals' costs.