In the short run, a perfectly competitive firm will always shut down if, at all positive output levels, total revenue is
a. less than total cost
b. less than total cost but greater than variable cost
c. less than total cost but greater than fixed cost
d. greater than fixed cost
e. less than variable cost
E
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Free riding can be found in team structures
Indicate whether the statement is true or false
In the figure below, we see an expansion of the production-possibility curve (from PPC1 to PPC2). The two goods produced are wheat and cloth, which are land-intensive and labor-intensive, respectively. The outward shift of the production-possibility curve is likely the result of
A. a fall in the average cost of producing cloth. B. an increase in the national amount of usable land, the size of the labor force remaining unchanged. C. an increase in the size of the labor force, the area under cultivation remaining unchanged. D. an increase in the price of cloth.
It is irrational for anyone to buy something whose price exceeded its ___________________.
Fill in the blank(s) with the appropriate word(s).
Describe the channels by which monetary policy ripples through the economy and explain how each channel operates
What will be an ideal response?