In the short run, if ATC is greater than price at the output level where MC = MR then:
A) new firms may be incentivized to enter the industry.
B) the firm may be able to minimize losses.
C) the firm will shut down.
D) the firm will realize an economic profit..
Answer: B) the firm may be able to minimize losses.
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What will be an ideal response?
Macroeconomics often relies on microeconomic analysis because
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A marginal revenue product curve shows the change in
a. total revenue caused by a one-unit change in output, other things constant b. total revenue caused by a one-unit change in an input, other things constant c. total product caused by a one-unit change in output, other things constant d. total product caused by a one-unit change in an input, other things constant e. total revenue product caused by a one-unit change in the price of the output, other things constant
A capitation arrangement between the plaintiff and the defendant in a lawsuit helps to reduce the problems of monitoring and uncertainty associated with a principal/agent relationship
Indicate whether the statement is true or false