If a firm shuts down in the short run, it will
a. incur losses equal to its fixed costs
b. produce at the output level where MC = MR
c. reduce its losses to zero
d. do this because P > AVC
e. have total revenue greater than total fixed costs
A
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An economy can improve its standard of living by
A) reducing the amount of human capital workers have. B) increasing the amount of capital available per hour worked. C) organizing production so that the quantity of goods produced per hour will decrease. D) all of the above
If you pay a very high price for a good or service, you _____ (are/are not) getting ripped off.
Fill in the blank(s) with the appropriate word(s).
Assume an economy experiences an increase in productivity that occurs as a result of a more widespread implementation of a major technological breakthrough. Given this information, we would expect which of the following to occur?
A) aggregate demand would not change B) aggregate demand would shift to the right C) aggregate demand would shift to the left D) both the aggregate demand and aggregate supply curves would shift to the left
If the price of bonds is set ________ the equilibrium price, the quantity of bonds demanded exceeds the quantity of bonds supplied, a condition called excess ________
A) above; demand B) above; supply C) below; demand D) below; supply