In the short run, a firm that produces and sells house paint can adjust
a. where to produce along its long-run average-total-cost curve.
b. the size of its factories.
c. how many workers to hire.
d. All of the above are correct.
c
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The ________ is the final amount that will be paid to the holder of a coupon bond
A) discount value B) coupon value C) face value D) present value
Suppose the price of an item in a perfectly competitive market is $3. For a firm in this market, MC = MR at an output of 100 units. The average total cost at this output level is $4 per unit, and TVC is $80. We may conclude that
A) the firm should shut down because TC > TR. B) the firm should continue to produce because P>AVC. C) the firm should shut down because its TFC is $320 and its TC is $400. D) the firm should shut down because other firms will enter the industry as the market is perfectly competitive.
Marginal revenue is the change in:
a. total revenue resulting from a one unit change in output. b. total revenue resulting from a change in marginal cost. c. price resulting from a one unit change in output. d. none of these.
Consumer surplus
a. is closely related to the supply curve for a product. b. is represented by a rectangle on a supply-demand graph when the demand curve is a straight, downward-sloping line. c. is measured using the demand curve for a product. d. does not reflect economic well-being in most markets.