If price is between the shutdown and break-even points, in the short run the firm will _____ and in the long run the firm will _____.
A. operate; go out of business
B. operate; stay in business
C. shut down; go out of business
D. shut down; stay in business
A. operate; go out of business
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According to your textbook, the following is the prime cause of traffic congestion:
A) Population growth B) The American automobile industry C) Most roadway space is not priced. D) A lack of commitment to public transportation expansion
The reason that you don't drink five cups of coffee at breakfast is that
a. the marginal utility of extra cups of coffee eventually diminishes b. most people cannot afford five cups c. the total utility of coffee rises as you consume more cups d. the price of coffee rises as you buy more cups e. the marginal satisfaction derived from cups of coffee remains constant
According to the Coase theorem, in the presence of externalities
a. private parties can bargain to reach an efficient outcome. b. government assistance is necessary to reach an efficient outcome. c. the assignment of legal rights can prevent externalities. d. the initial distribution of property rights will determine the efficient outcome.
If there is a trade deficit, that creates a current account deficit
A. a currency must ultimately decrease in value. B. exports must be greater than imports. C. there must be a capital account deficit, too. D. there must be a capital account surplus.