If your total revenue is $10 million, your variable costs are $8 million, and your fixed costs are $20 million, in the short run you will
A. operate.
B. shut down.
C. go out of business.
A. operate.
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Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The price the seller receives for the product after the tax is imposed on the buyer is
A. $7. B. $5. C. $8. D. $3.
A decline in autonomous planned investment spending causes the equilibrium level of aggregate output to ________ and shifts the ________ curve to the ________, everything else held constant
A) rise; LM; right B) rise; IS; right C) fall; IS; left D) fall; LM; left
Under monopoly, resources are allocated as efficiently as in perfect competition.
Answer the following statement true (T) or false (F)
An oligopoly will always use game theory to maximize sales rather than profits
a. True b. False Indicate whether the statement is true or false