Suppose that at the current level of output, price = $100, MC = $100, AVC = $80, and ATC = $90. Which of the following is TRUE?
A. The firm should decrease output.
B. The firm should shut down.
C. The firm should increase output.
D. The firm should maintain the current level of output.
Answer: D
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Globalization benefits all the participating nations equally
a. True b. False Indicate whether the statement is true or false
The specificity of the asset (or investment) leads to the possibility of:
A. opportunism. B. prisoner's dilemma. C. collusion. D. None of the statements is correct.
The demand curve a monopolist faces is
A. horizontal. B. inelastic at all points. C. the industry demand curve. D. vertical.
As disposable income decreases, the:
A. Average propensity to consume increases B. Average propensity to consume decreases C. Level of consumption increases D. Level of saving increases