Jimmy, Walter, Mike, and Bill run a school for political candidates. The school has fixed costs of $10 million, variable costs of $4 million, and total revenue of $15 million. In the short run the school will _____ and in the long run the school will ____.
A. operate; stay in business
B. operate; go out of business
C. shut down; stay in business
D. shut down; go out of business
A. operate; stay in business
You might also like to view...
In 1995, the General Agreement on Tariffs and Trade (GATT), which was established in 1948, was replaced by the World Trade Organization (WTO). Why did members of the GATT push for the establishment of the WTO?
A) The GATT agreement only covered trade in goods. The WTO was created to cover trade in goods, services, and intellectual property. B) By 1995 tariffs had been eliminated. The WTO was created to reduce non-tariff trade barriers. C) The charter of the GATT had run out and a new organization was needed to promote international trade. D) The creation of the European Union (EU) made the GATT obsolete. The WTO was formed to regulate trade between the EU and other nations.
If fiscal policy makers increase aggregate demand in an attempt to decrease the unemployment rate below the natural rate of unemployment, then: a. the potential GDP will decrease
b. the potential GDP will increase. c. the only lasting impact of the policy is a higher price level. d. the only lasting impact of the policy is higher real GDP. e. the only lasting impact of the policy is lower real GDP.
Which statement is false?
A. The break-even point lies on the firm's short-run supply curve. B. The firm's short-run and long-run supply curves both run along the marginal cost curve. C. In the short run a firm losing money will operate if the price is between the break-even point and the shutdown point. D. The lowest price acceptable to a firm in the short run is at the break-even point.
This production possibility table illustrates:EggsRye100810620430240050
A. increasing marginal opportunity cost. B. decreasing marginal opportunity cost. C. zero opportunity cost. D. constant marginal opportunity cost.