Suppose the price of an item in a perfectly competitive market is $2. For a firm in this market, MC = MR at an output of 100 units. The average total cost at this output level is $4 per unit, and TVC is $80. We may conclude that
A) the firm should shut down because TC > TR.
B) the firm should continue to produce because P>AVC.
C) the firm should shut down because its TFC is $320 and its TC is $400.
D) the firm should shut down because other firms will enter the industry as the market is perfectly competitive.
Answer: B
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A fair distribution of income for the U.S. economy is
a. not an economic issue b. defined by the Department of Agriculture c. a positive economic question d. a normative economic question e. a state and local issue but not a national one
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and real GDP falls. b. The quantity of real loanable funds per time period falls, and real GDP rises. c. The quantity of real loanable funds per time period rises, and real GDP remains the same. d. The quantity of real loanable funds per time period and real GDP remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Check clearing is important to company cash management systems, because:
a. Companies can use it to accelerate payables. b. Companies can use it to decelerate receivables. c. Companies can sweep more funds into interest-earning assets by using efficient check-clearing process. d. All of the above. e. None of the above.
There are 72,922 seats in Lambeau Field where the Green Bay Packers play football. The Packers have sold out their season tickets since 1960. There are about 80,000 people on the waiting list to buy season tickets in 2015
If the Packers raised ticket prices, the A) demand for Packers tickets decreases. B) demand curve for Packers tickets shifts leftward. C) demand curve for Packers tickets shifts rightward. D) the quantity demanded of Packers tickets decreases.