In the short run, the relevant costs for a firm to consider whether to shut down production are:
A. average total costs.
B. average variable costs.
C. fixed costs.
D. average fixed costs.
Answer: B
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Strategic behavior and game theory are features of which market structure?
A) perfect competition B) monopoly C) monopolistic competition D) oligopoly
One difference between moral hazard and adverse selection is
a. Moral hazard has to do with unobservable characteristics of individuals b. Adverse selection has to do with unobservable actions of individuals c. Adverse selection occurs when individuals least appropriate for positions are most likely to apply for them d. Adverse selection is when you choose the wrong answer on a test
In terms of total sales, the dominant form of business firm in the U.S. economy is the
a. corporation b. sole proprietorship c. partnership d. nonprofit organization e. limited partnership corporation
The balance of payments summarizes the transactions that occur during a given time period between
a. the government of one country and the government of another country b. the national government and local governments in the same country c. individuals, firms, and government of one country and individuals, firms, and governments throughout the rest of the world d. individuals, firms, and governments of two countries e. non-government residents (individuals and firms) of two countries