A firm will shut down if
a. it earns too little economic profit
b. there are a large number of buyers and sellers
c. it suffers an economic loss
d. there is a change in tastes and preferences
e. price is everywhere less than average variable cost
E
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Exogenous changes in spending refer to changes in planned spending:
A. caused by changes in output. B. caused by changes in the inflation rate. C. not caused by changes in output or changes in the inflation rate. D. caused by changes in the real interest rate.
Social Security payments are examples of
A) transfer payments. B) nondurable goods. C) durable goods. D) services.
Deflation is
A. a constant rate of inflation. B. a slow-down in the rate of inflation. C. zero inflation. D. a decline in the average price level.
A risk-averse person has
a. utility and marginal utility curves that slope upward. b. utility and marginal utility curves that slope downward. c. a utility curve that slopes down and a marginal utility curve that slopes upward. d. a utility curve that slopes upward and a marginal utility curve that slopes downward.