When should a firm shut down in the short run?
a. When its revenues cannot cover its variable costs
b. When its revenues cannot cover its fixed costs
c. When price equals the minimum average variable
d. When it is unable to make any accounting profits
a. When its revenues cannot cover its variable costs
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What is the marginal cost of producing the third unit?
a. $100 b. $200 c. $300 d. $400
If foreign firms send profits back to their industrial countries from the developing countries, developing countries will have a larger deficit on their balance of payments accounts
a. True b. False Indicate whether the statement is true or false
If the U.S. interest rate falls relative to the British interest rate,
a. the U.S. demand for pounds will not change b. the U.S. demand for pounds will decrease c. the U.S. demand for pounds will increase d. there will be a rightward movement along the U.S. demand curve for pounds e. there will be a leftward movement along the U.S. demand curve for pounds
If the population increase in India is smaller than the increase in Indian real GDP, then GDP per capita will
a. decrease. b. increase. c. remain constant. d. increase more slowly than real GDP.