At zero units of output a firm's variable costs are zero.
Answer the following statement true (T) or false (F)
True
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Unregulated natural monopolies:
A. never capture lowest costs per unit possible. B. can capture profits by restricting output. C. create no problems for policy-makers. D. are always protected by government policy.
The trade balance is
a. the services balance plus the current account balance plus the capital account balance b. merchandise exports minus merchandise imports c. the current account balance plus the capital account balance d. foreign purchases of domestic assets minus domestic purchases of foreign assets e. the services balance plus the capital account balance
If a public corporation goes bankrupt and does not have enough assets to pay off all creditors:
A. the fact that stockholders are residual claimants means they may have to pay in additional capital to cover the obligations. B. the stockholders receive any dividends due before the other creditors are paid C. the stockholders cannot lose more than their investment. D. the stockholders are personally liable for the balance.
If a 5 percent cut in the price of a product causes the quantity demanded to rise by 10 percent, the demand is:
A. Inelastic B. Elastic C. Unit elastic D. Perfectly elastic