A firm can minimize its losses by shutting down when ________ are less than ________ costs.
A. variable costs; fixed
B. fixed costs; variable
C. operating profits; sunk
D. revenues; variable
Answer: D
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Based on the figure above, which of the following factors could lead the demand curve to shift leftward from D0 to D2?
A) a rise in expected future U.S. exchange rate B) a fall in the U.S. exchange rate C) a rise in the U.S. interest rate D) a rise in the U.S. exchange rate E) a fall in foreign interest rates
Which of the following explains why long-run average total cost at first decreases as output increases?
a. diseconomies of scale b. less efficient use of lumpy inputs c. fixed costs become spread out over more units of output d. gains from specialization of inputs e. marginal costs rise at a slower rate than average costs in the short run
(Consider This) Credits cards are:
A. the fastest growing component of the M1 money supply. B. near-monies that are part of the M2 money supply but not the M1 money supply. C. not money, as officially defined. D. also known as time deposits.
An increase in the wage rate of diamond cutters will increase the supply of cut diamonds.
Answer the following statement true (T) or false (F)