If price falls below the minimum point on the AVC curve, in the short run the firm should ________, and in the long run the firm should ________.
A. shut down; expand
B. produce where MC = MR; expand
C. produce where MC = MR; exit the industry
D. shut down; exit the industry
Answer: D
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What is the term that explains why voters often lack knowledge of pending legislation, and lack knowledge of the views of candidates for office on a range of issues that affect their own (the voters') welfare?
A) rational ignorance B) regulatory capture C) the voting paradox D) logrolling
The following economy produces two products.ProductsProduction Possibilities?ABCDEFSteel012345Wheat100907555300Refer to the above table. A change from possibility C to B means that:
A. 1 unit of steel is given up to get 15 more units of wheat. B. 1 unit of steel is given up to get 75 units of wheat. C. 2 units of steel are given up to get 75 units of wheat. D. 2 units of steel are given up to get 15 more units of wheat.
Consumers and firms are known as price takers only if
A) no market exists to determine the equilibrium price. B) they can set the market price. C) they cannot unilaterally affect the market price. D) excess demand exists.
Tariffs can be used to redistribute income from
A) abundant factors to scarce factors. B) consumers to domestic producers. C) from one country to another. D) All of the above.