In making an investment decision, an entrepreneur
A. Must take account of diminishing returns to fixed factors.
B. Makes a shutdown decision if price is below average variable cost.
C. Decides the level of output to produce.
D. Treats all costs as variable.
Answer: D
You might also like to view...
Explain how the terms of trade index is calculated and what it means
The firm's demand curve in monopolistic competition slopes downward because
a. there are strong barriers to entry in the industry b. of product differentiation among the goods firms produce c. only few firms exist in the industry d. the market demand curve is downward sloping e. the market demand curve is horizontal
Assume that Currency 1 appreciated in terms of Currency 2 . Which of the following statements is always true?
a. Currency 2 appreciated as well in terms of currency 1. b. Currency 2 may have appreciated or depreciated in terms of currency 1. c. Currency 2 depreciated in terms of currency 1. d. Currency 2 appreciated in terms of any currency. e. Currency 2 depreciated in terms of any currency.
Which of the following is a factor that affects both the supply of and demand for a good?
A. Technology B. Price of inputs C. Consumers' income D. Government regulations