If a firm shuts down in the short run, will it have zero costs or not? Explain
What will be an ideal response?
No, the firm will still have fixed costs.
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The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?
What will be an ideal response?
The Sherman Antitrust Act was passed to
A) protect companies from foreign competition. B) protect the monopoly profits of firms. C) control the growth of monopolies in the U.S. D) prevent market price from equaling marginal cost.
Economists believe that people who sit through bad music concerts likely do so because:
A. they do not ignore the sunk cost involved. B. they don't accurately consider what else they could be doing with their time. C. they undervalue the opportunity cost of their time. D. All of these are true.
Which of the following will reduce the supply of motorcycles?
a. an increase in the population age 16 to 35, the primary consumers of motorcycles b. an increase in taxes imposed on motorcycle producers c. a technological improvement reducing the production costs of motorcycles d. a government study that reveals motorcycle riders, on average, live 10 years longer than those who don't ride motorcycles