If ________, a firm would either operate or shut down in the short run and contract in the long run.
A. AFC > AVC
B. TR > TC
C. AVC > ATC
D. TC > TR
Answer: D
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The Chinese policy of one child per family provided McDonald's the opportunity to actively market to:
A) children. B) senior citizens. C) parents. D) none of the above.
The marginal propensity to consume: a. is the proportion of disposable income that is consumed
b. is the ratio of disposable income to consumption. c. is the change in consumption relative to a change in disposable income. d. minus the marginal propensity to save must equal 1. e. is greater than 1 at all levels of income.
What would be shown through a sustained increase in real output per capita?
a. the size of budget surpluses b. efficient use of scarce resources c. the value of human capital d. long-term economic growth
A firm purchases a factor of production in a competitive market. At the current purchase rate the MRP of the factor is greater than the marginal expenditure for the factor. Thus, the firm
A) can increase profit by reducing the employment of the factor of production. B) is now maximizing profit. C) should not use this factor of production because it has no potential in generating a profit. D) can increase profit by expanding the employment of the factor of production.