In the short-run, a firm's decision to shut-down should not include
a. Avoidable costs
b. Variable costs
c. Fixed costs
d. Marginal costs
c
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If Dell Computer Company could produce more computers at lower long-run average cost by increasing the quantity of all the inputs it uses, Dell definitely would experience
A) decreasing marginal returns. B) diseconomies of scale. C) increasing marginal returns. D) economies of scale.
A monopolist faces a marginal revenue curve that is below the demand curve, resulting in the production of an allocatively efficient quantity
a. True b. False Indicate whether the statement is true or false
Average revenue is equal to
A. TR/Q. B. (P × Q)/P. C. TR × Q. D. All of the responses are correct.
The law of supply states that, other things equal, when the price of a good falls, the quantity supplied falls as well
a. True b. False Indicate whether the statement is true or false