In the standard model of pure competition, a profit-maximizing firm will shut down in the short run if:
A. Marginal cost is greater than average revenue
B. Average cost is greater than average revenue
C. Average fixed cost is greater than average revenue
D. Total revenue is less than total variable cost
D. Total revenue is less than total variable cost
You might also like to view...
According to liquidity preference theory, a decrease in the price level shifts the
a. money demand curve rightward, so the interest rate increases. b. money demand curve rightward, so the interest rate decreases. c. money demand curve leftward, so the interest rate decreases. d. money demand curve leftward, so the interest rate increases.
An American good with a price tag of $89 costs 809 pesos. The exchange rate must be approximately
A) $11.00 = 1 peso B) $0.11 = 1 peso C) $0.89 = 1 peso D) $0.09 = 1 peso E) none of the above
Which of the following examples of product differentiation uses location?
a. A restaurant promotes its make-your-own hamburgers. b. In an ad, a restaurant says it is situated on a beautiful lake. c. A bed-and-breakfast touts its four-star rating on its website. d. The trailer for a movie presents several excellent reviews from critics.
The table below shows the number of labor hours required to produce one umbrella and one bushel of corn in the United Kingdom and the rest of the world. If the United Kingdom and the rest of the world begin to trade with each other, the international price of corn will lie between ________ and Labor hours to make:In the United KingdomIn the Rest of the World1 umbrella3.002.001 bushel of corn1.000.25
A. three umbrellas per bushel of corn; eight umbrellas per bushel of corn. B. 1/8 of an umbrella per bushel of corn; 1/3 of an umbrella per bushel of corn. C. 1/8 of an umbrella per bushel of corn; eight umbrellas per bushel of corn. D. 1/3 of an umbrella per bushel of corn; three umbrellas per bushel of corn.