In which market structure will a firm choose not to shut down when price is less than average variable cost?
A) perfect competition
B) monopoly
C) monopolistic competition
D) None of the above. All firms will shut down when P < AVC.
D
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A dominant strategy is one which
a. is best for a player no matter what strategy the other player chooses. b. is optimal given the other player's strategy, but may not be optimal should the other player switch strategies. c. will lead to a Pareto-optimal outcome. d. will be chosen by the first player in a sequential game.
Vertical equity refers to the notion that equally situated individuals should be taxed equally
a. True b. False Indicate whether the statement is true or false
According to the text, the portion of total U.S. national income spent on health care was about ________ in 2015 as opposed to about ________ in 1965
A) 34 percent; 17 percent B) 17 percent; 34 percent C) 6 percent; 17 percent D) 17 percent; 6 percent
Refer to the diagram, where S d and D d are the domestic supply and demand for a product and P c is the world price of that product. S d + Q is the product supply curve after an import quota is imposed. A tariff of P c P t or an import quota of wy will have the same effect on:
A. the volume of imports.
B. the domestic price.
C. the revenues of domestic producers.
D. all of these.