Which of the following does not apply to a firm that has shut down in the short run?
a. Variable cost is zero.
b. Total revenue is zero.
c. Total cost exceeds total revenue.
d. Total cost is zero.
e. Fixed cost is positive.
D
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Table 7-1 Workers Toys1 5212322430535? ? ? In Table 7-1, the average physical product after five workers are hired is ?
A. 5. B. 6. C. 7. D. 8.
Use the following graph for a perfectly competitive firm to answer the next question.
At its short-run equilibrium point, the firm's
A. marginal revenue equals its average variable cost. B. marginal cost equals its average fixed cost. C. marginal revenue equals its average total cost. D. marginal cost equals its average variable cost.
Risk that is related to the uncertainty about interest rate movements is called
A) default risk. B) interest-rate risk. C) the problem of moral hazard. D) security risk.
The socially efficient level of output is determined where:
A. marginal social cost equals marginal social benefit. B. marginal private cost equals marginal social benefit. C. average social cost equals average social benefit. D. average private cost equals average social benefit.