If there is no output for which product price is sufficient to cover variable costs
A) the firm should stay open in the short-run.
B) the firm should shut down in the short run.
C) the firm earns economic profits by staying open.
D) the firm should increase production.
Answer: B
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A market in which there is only one seller, and there is no close substitute for the product being sold, is called
A) perfect competition. B) monopolistic competition. C) monopoly. D) oligopoly.
Compare how money was backed in the past with how it is backed today and explain what prompted this change.
What will be an ideal response?
In the financial crisis that precipitated the 2007-2009 recession, people systematically overestimated their prospects for financial gain. Which branch of economics would most likely have expected to predict this?
A. Neoclassical economics. B. Keynesian economics. C. Behavioral economics. D. Classical economics.
Arturo runs a Taco Bell franchise. He is selling 250 Gordita Supremes per week at a price of $2.75. If he lowers the price to $2.70, he will sell 251 Gordita Supremes. What is the marginal revenue of the 251st Gordita Supreme? If selling the extra
Gordita Supreme adds $0.20 to Arturo's costs, what will be the effect on his profit from selling 251 Gordita Supremes instead of 250? What will be an ideal response?