Suppose a perfectly competitive firm faces the following cost and revenue conditions: ATC = $25.50; AVC = $20.50; MC = $25.50; MR = $28.50. The firm should
A) decrease output.
B) increase output.
C) shut down.
D) continue to produce its current output.
B
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All of the following are barriers to international investment EXCEPT
A) adverse selection. B) incomplete information. C) moral hazard. D) symmetric information.
The number of unemployed divided by the labor force equals
A) the inflation rate. B) the labor force participation rate. C) the unemployment rate. D) the misery index.
For the monopolistically competitive firm, in both the short run and the long run
A) the demand curve is inelastic. B) price will exceed marginal cost. C) there will be no economic profit. D) production will be at minimum average cost.
Which of following is not an important category of bias in human decision making?
A. Temptation. B. Limited processing power. C. Reluctance to change. D. Single-mindedness.