A firm's shutdown point is the quantity and price at which the firm's total revenue just equals its
A) total cost.
B) total variable cost.
C) total fixed cost.
D) marginal cost.
B
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Suppose the shift from AD0 to AD1 and from AS0 to AS1 is the result of fiscal policy. Which of the policies below could lead to these shifts?
i. An increase in government expenditure ii. A tax cut iii. A decrease in government expenditure iv. A tax hike A) iv only B) i and ii C) i and iv D) i only E) iii and iv
Refer to the figure above. Domestic producers of this product in A would most prefer
A) a customs union with C. B) a customs union with B. C) a free trade agreement with both B and C. D) no agreement with either country.
If a single-price monopolist sets price where the price elasticity of demand exactly equals 1, its
A) total profits are at a maximum. B) total revenue is at its maximum. C) total revenue is rising, although marginal revenue is falling. D) total revenue is falling. E) marginal revenue is always positive.
Scarcity is imposed on individual households in the form of income and
a. limited production. b. utility. c. sunk costs. d. the prices of the goods that a person may purchase.