If ________, a firm would either operate or shut down in the short run and contract in the long run.
A. AVC > ATC
B. TR > TC
C. AFC > AVC
D. TC > TR
Answer: D
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In a non-cooperative, imperfect information, simultaneous-choice, one-period game, a Nash equilibrium
A) will never exist. B) will always include dominant strategies. C) will always result in both players taking the same action. D) may not maximize the sum of the firms' profits.
One key characteristic that is distinctive of an oligopoly market is that:
a. the demand curve facing each firm is downward sloping, with a marginal revenue curve that lies below the firm's demand curve. b. the decisions of one seller often influences the price of products, the output, and the profits of rival firms. c. there is only one firm that produces a product for which there are no good substitutes. d. there are many sellers in the market and each is small relative to the total market.
Careetha has just taken a fixed-rate loan and agreed to pay a nominal interest rate of 6 percent. If the inflation rate during the first year of the loan was 2 percent, her real interest rate that first year was
a. 6 percent b. 8 percent c. 4 percent d. 12 percent e. impossible to calculate without additional information
If nominal GDP for an economy is $10,444 billion and the price index is 110, then real GDP is $9495.
Answer the following statement true (T) or false (F)