A firm should not necessarily shut down if:
a. total revenue is less than total variable cost.
b. firms suffer losses and the price is above variable costs.
c. the demand curve facing the firm lies below its average variable cost curve.
d. price is less than average variable cost.
e. firms suffer losses and the price is below variable costs.
e
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Any point on the production possibility frontier is
A) attainable and might be allocatively inefficient. B) attainable and must be allocatively efficient. C) less production efficient than a point in the interior of the PPF. D) always allocatively efficient but might or might not be production efficient. E) always production efficient and always allocatively efficient.
What caused a major economic shock in August 2007?
A) U.S. mortgage market B) war in Iraq C) U.S. bond market D) technology stocks E) misreporting from Asian markets
When all currencies are tied directly to gold, then
A) currency exchange rates throughout the world are flexible. B) currency exchange rates throughout the world are fixed. C) the world's stock of gold cannot change. D) the price of each nation's currency in terms of gold is flexible.
Product differentiation takes place in the ______________.
Fill in the blank(s) with the appropriate word(s).