In the short run, a firm will stay in business as long as:

A. price equals average revenue.
B. marginal revenue is greater than or equal to marginal cost.
C. price exceeds average variable cost.
D. price is less than average variable cost.


Answer: C

Economics

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The short-run aggregate supply curve shows the relationship between ____ and ____, holding all other factors constant

a. a price level, the quantity of real GDP supplied b. price level, the supply of real GDP c. nominal GDP, the price level of real GDP d. the quantity of nominal GDP supplied, the price level

Economics

The equilibrium level of national income occurs where

a. Y = C + S b. C + Ii = C + S c. Y = C + S + I d. C + Ii = S e. Y = C + S + Ii

Economics

Refer to the following graphs. Which graph(s) represent(s) an externality?




A. graph A
B. graphs A and B
C. graph B
D. neither graph A nor graph B

Economics

In the absence of trade, a country produces at a point where its production-possibility curve is tangent to the highest possible community indifference curve.

Answer the following statement true (T) or false (F)

Economics