If TR < TVC, a firm would ________ in the short run and ________ in the long run.
A. operate; exit the industry
B. operate; expand
C. not operate; expand
D. shut down; exit the industry
Answer: D
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A perfectly competitive industry's short-run supply curve is best described as
A) the upward sloping portion of the industry's marginal cost curve. B) horizontal. C) perfectly inelastic. D) the horizontal summation of the individual firms' supply curves.
A depreciation of the U.S. dollar will benefit the _____. a. countries exporting to the U.S
b. Australian firms selling in the U.S. c. U.S firms selling in Europe d. Japanese investors who have invested money in the U.S.
Sonia opened a yoga studio where she teaches classes and sells yoga clothing. Variable costs for Sonia's yoga studio include the cost of the (i) tank tops. (ii) wages paid to the other yoga instructors. (iii) lease on the studio space. (iv) insurance that the landlord requires Sonia to carry for the studio
a. (i) only b. (i) and (ii) only c. (iii) and (iv) only d. (i), (ii), (iii), and (iv)
The existence of a negative externality will result in:
A. a less than optimal level of production. B. elimination of deadweight loss. C. a greater than optimal level of production. D. prices that are artificially high.