Under what conditions should a competitive firm shut down in the short run?
What will be an ideal response?
When market price is below average variable cost at the output where marginal revenue equals marginal cost, the firm should shut down in the short run.
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The United States uses a single payer model of healthcare in which the government pays for all healthcare. Because a single payer model of health care creates no deadweight loss, most economists agree that the U.S. system of health care is efficient
A) Both sentences are false. B) The first sentence is false; the second sentence is correct. C) The first sentence is correct; the second sentence is false. D) Both sentences are correct.
The monetary base consists of:
A) currency plus reserves. B) currency plus required reserves. C) currency plus excess reserves. D) currency plus demand deposits.
When grocery stores issue special discount membership cards for shoppers effectively offering different prices based on quantities consumed, this is an example of
A) price discrimination. B) price differentiation. C) product differentiation. D) patent protection.
Which of the following are not included in GDP? a. Transfer payments
b. Imports c. Intermediate goods. d. All of the above are excluded from GDP.