If a firm's average total cost is less than price where MR = MC
A) the firm should shut down.
B) the firm should raise its price.
C) the firm should continue to produce the output it is producing.
D) the firm should cut back on its output to lower its cost.
Answer: C
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If the marginal revenue product (MRP) of labor is less than the wage rate
A. less labor should be employed. B. the firm is making profits. C. the firm is incurring losses. D. more labor should be employed.
Which of the following is NOT a condition for third degree price discrimination?
A) Monopoly power B) Different own price elasticities of demand C) Economies of scale D) Separate markets
In general, a plaintiff and defendant should be expected to settle if the expected ________ from the litigation is ________ the expected ________.
A) gain; greater than; loss B) loss; greater than; gain C) loss; less than; gain D) loss; exactly one half of; gain
The federal government began officially measuring poverty in the
A) 1860s. B) 1900s. C) 1930s. D) 1960s.