If ________, a firm would shut down in the short run and exit the industry in the long run.
A. TR > TVC but TR < TC
B. TR = TC
C. TR < TVC
D. TR > TFC
Answer: C
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One of the potential downsides of expansionary fiscal policy is that it often increases
A. national debt. B. taxes. C. budget surpluses. D. unemployment.
Figure 7-5
Which of the curves in Figure 7-5 could be a firm’s average fixed cost curve?
A. (a) B. (b) C. (c) D. (d)
When poor families are compared to nonpoor families of the same ethnic background, significant cultural differences appear
Indicate whether the statement is true or false
Consider the case of complementary goods. An increase in the demand for peanut butter can be caused by a(n)
a. decrease in consumer income b. increase in the price of jams, jellies, and preserves c. decrease in the price of bread d. drought in Georgia that destroyed 30 percent of the peanut crop e. decrease in the price of bologna