If your firm is producing a good at a level where marginal revenue equals marginal cost, and price is less than average variable cost, then in the short run your firm should:
A. shut down and suffer a loss equal to your fixed costs.
B. continue to produce, but increase output.
C. continue to produce the same amount.
D. continue to produce, but decrease output.
Answer: A
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Which of the following increases the quantity supplied of compact discs but does NOT increase the supply of compact discs?
A) new technology that lowers the cost of producing compact discs B) a decrease in the price of a compact disc C) an increase in the price of a compact disc D) a decrease in the number of suppliers of compact discs E) an increase in the price of the resources used to produce compact discs
The range of output for a duopoly ranges between the
A) perfectly competitive outcome and the monopolistically competitive outcome. B) efficient scale and the perfectly competitive outcome. C) minimum of ATC and the efficient scale. D) monopoly outcome and the perfectly competitive outcome. E) short-run perfectly competitive outcome and the long-run perfectly competitive outcome.
_____ established the first American colonies in the early 1500s
a. England b. The Low Countries c. France d. Spain
Which of the following is not a basic monetary policy tool used by the Fed?
A. The discount rate. B. The reserve requirement. C. Taxes. D. Open-market operations.