If Carol's Crayon Factory's price exceeds its average total cost in the short run, then
a. it should shut down
b. it is earning a profit
c. profits are being maximized
d. it should increase output
e. it should decrease output
B
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The five competitive forces model was developed by
A) Michael Spence. B) John Nash. C) Porter Smith. D) Michael Porter.
As we move down a particular indifference curve, if the "marginal rate of substitution" between the two goods does not change we can conclude that the two goods are:
A) perfect substitutes. B) perfect complements. C) totally unrelated. D) both inferior goods.
Scarcity affects
A) only rich people. B) only poor people. C) only middle income people. D) all people.
To see if the effect of an explanatory variable has changed over a certain time period, we can interact the time dummy with that variable.
Answer the following statement true (T) or false (F)