What is the difference between shutting down and exiting a market?
a. Shutting down means to leave temporarily; exiting means to leave permanently.
b. Shutting down means to close some operations; exiting means to close all operations.
c. Shutting down means to leave permanently; exiting means to leave temporarily.
d. Shutting down means to close all operations; exiting means to close some operations.
a. Shutting down means to leave temporarily; exiting means to leave permanently.
You might also like to view...
A market is classified as monopolistically competitive when
A) there is a barrier that blocks entry by other firms. B) a small number of firms compete. C) many firms produce the same product. D) many firms produce a slightly differentiated product. E) there is one firm that sells a good or service with no close substitutes.
Refer to Table 8.3 . Assume the price of labor is $5.00 and the price of capital is $10.00 and the firm's fixed costs are $15
What production technique will be used to produce the first unit of output? The second? The third? What are the firm's total variable costs, total costs, and marginal costs of producing one unit of output? Two units of output? Three units of output?
Consider the perfectly competitive firm in the above figure. The shutdown point occurs at a price of
A) $11.00. B) $12.00. C) $16.00. D) $22.00.
Which of the following offers the best explanation of why "marginal revenue equals marginal cost" is the rule that indicates the profit-maximizing output level?
A. If output were reduced from the profit-maximizing level, then the firm would be gaining marginal revenue that exceeds marginal cost, and thus increasing the level of profit. B. If output were increased from the profit-maximizing level, then the firm would be gaining marginal revenue that is less than the marginal cost incurred in producing this additional unit, and thus reducing the level of profit. C. Because the firm colludes with other similar firms to set price equal to marginal cost. D. The marginal revenue is equal to the marginal cost at all levels of output for a perfectly competitive firm.