In the short run, if a firm's total variable cost curve lies above its total revenue curve at all possible output levels, the firm's minimum short-run loss
a. equals its total fixed cost
b. equals zero
c. occurs at the maximum point of the total revenue curve
d. occurs at the maximum point of its marginal revenue curve
e. occurs at the minimum point of its marginal cost curve
A
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Assume a country is required by law to balance the budget every year. Suppose aggregate demand falls, causing a recession and a budget deficit
To balance the budget, what would the government need to do with the level of government spending and taxes? How would these changes in government spending and taxes affect aggregate demand and the economy?
One problem with using market values to measure GDP is that
A) you cannot compare completely heterogeneous goods by using their dollar values. B) some useful goods and services are not sold in markets. C) prices for some goods change every year. D) market values of exported goods are usually priced in foreign currencies.
Which of the following is true of a foreign exchange market? a. It is a market in which people or firms use one currency to purchase another currency. b. It is a market in which people or firms use one good to purchase another good
c. It is a market in which there is only one seller of foreign currencies. d. It is a market in which only one representative of each country can trade foreign currencies.
Imposing a restrictive quota on imported plasma TVs will:
A. increase the price of the plasma TVs and decrease the quantity consumed. B. increase both the price of the plasma TVs and the quantity consumed. C. leave the price of the plasma TVs unchanged but decrease the quantity consumed. D. leave the price and the quantity consumed of plasma TVs unchanged, because domestic producers will expand production to make up for the reduction in imports