If price is above the break-even point, in the short run the firm will _____ and in the long run the firm will _____.
A. shut down; stay in business
B. shut down; go out of business
C. operate; go out of business
D. operate; stay in business
D. operate; stay in business
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For normal goods which of the following explains why demand curves slope downward?
A) prices and income B) substitutes and complements C) resources and technology D) substitution effect and income effect
A program through which new ideas, methods, and advice are offered to farmers to increase farm yields is known as
(a) agricultural extension. (b) agricultural mechanization. (c) an agrarian system. (d) land reform.
Which of the following items is most likely to be an inferior good?
a. bus tickets b. airline tickets c. housing d. stereo equipment e. home computers
Sunk costs:
A. can be ignored because they have no effect on marginal costs. B. should be taken into consideration when choosing the best level of an activity. C. should not be ignored because they lead to higher marginal costs. D. can be ignored because they don't have to be paid by the decision maker.