When a firm minimizes its losses in the short run,
A. It continues to produce only if price exceeds average variable cost.
B. The firm enters or exits from the market.
C. It continues to produce only if price exceeds marginal revenue.
D. The firm makes an investment decision.
Answer: A
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If firms in a perfectly competitive market are incurring economic losses, then as time passes firms ________ and the market ________
A) enter; demand curve shifts leftward B) enter; supply curve shifts rightward C) exit; demand curve shifts leftward D) exit; supply curve shifts rightward E) exit; supply curve shifts leftward
Even though reliable data is lacking, the Beard-Hacker Thesis maintains that the Civil War (1861–1865)
(a) was more costly to the South than to the North. (b) ended Southern prosperity through the abolition of slavery. (c) increased immigration to the U.S. (d) sped up the industrialization of the U.S.
How does moral hazard affect market outcomes?
If MUx/Px exceeds MUy/Py, then a household can increase its utility by spending more on Y and less on X.
Answer the following statement true (T) or false (F)