A firm's marginal cost has a minimum value of $4, its average variable cost has a minimum value of $6, and its average total cost has a minimum value of $7 . Then the firm will shut down in the short run once the price of its product falls below
a. $7.
b. $6.
c. $4.
d. We do not have enough information to answer the question.
b
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If an increase in autonomous consumption spending of $10 million results in a $50 million increase in equilibrium real GDP, then
A) the MPC is 0.5. B) the MPC is 0.75. C) the MPC is 0.8. D) the MPC is 0.9.
Heterogeneous population
A) implies that heteroskedasticity-robust standard errors must be used. B) suggest that multiple characteristics must be used to describe the population. C) effects can be captured through interaction terms. D) refers to circumstances in which there is unobserved variation in the causal effect with the population.
If a monopoly is producing an amount of output level at which marginal revenue exceeds marginal cost, in order to increase its profit the monopoly will ________ its price and ________ its output
A) raise; decrease B) lower; increase C) lower; decrease D) raise; increase
Suppose Mexico can produce 5 autos or 10 corn. Suppose the United States can produce 4 autos or 20 corn. If opportunity costs are constant for both countries, then
A) the United States has a comparative advantage in corn production. B) Mexico has a comparative advantage in corn production. C) the United States cannot gain from trade with Mexico. D) the United States has a comparative advantage in auto production.