Firm A and firm B both have total revenues of $200,000 and total costs of $250,000; firm A has total fixed costs of $40,000, while firm B has total fixed costs of $70,000. Which of the following statements are true in the short run?
A. Firm A should operate.
B. Firm B should operate.
C. Firm A should shut down.
D. Firm B should shut down.
E. both b and c
Answer: E
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The change in the quantity of goods and services that an hour's work can buy is measured by the
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Indicate whether the statement is true or false
If a monopolist is able to price discriminate: a. consumer surplus is increased
b. the welfare loss from monopoly is increased. c. producer surplus is decreased. d. some consumer surplus and deadweight losses are transformed into monopoly profits.