A perfectly competitive firm should shut down in the short-run if price falls below the minimum of
A) marginal cost.
B) marginal revenue.
C) average total cost.
D) fixed costs.
E) average variable costs.
E
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An increase in an individual's income without changing relative prices will:
a. rotate the budget constraint about the X-axis. b. shift the indifference curves outward. c. shift the budget constraint outward in a parallel way. d. rotate the budget constraint about the Y-axis.
Use the following demand and supply functions: Demand:Qd = 900 - 60PSupply:Qs = - 200 + 50PLet supply remain constant; an increase in income causes consumers to be willing and able to buy 220 more units at each price than they were previously. The new equilibrium price and quantity are
A. P = $15 and Q = 600. B. P = $10 and Q = 520. C. P = $12 and Q = 400. D. P = $10 and Q = 80.
No nation needs default on debts that call for repayment in its own currency. However, Russia astounded the financial world in 1998 by choosing to default on its
A. dollar denominated debt. B. ruble denominated debt. C. British sterling pounds denominated debt. D. none of these.
Suppose this table shows your demand schedule for Buffalo chicken wings. (a) What is your total utility from four wings? (b) What is your marginal utility from the fifth wing? (c) If the price is $.25, how much will your consumer surplus be?
