Assume a firm is facing the following situation: At Q = 1,000, P = $10, MC = $10, ATC = $18, and AVC = $16. This firm should shut down and, in so doing, limit its losses to $2,000
Indicate whether the statement is true or false
TRUE
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A merger of firms that compete in the same market is classified as a conglomerate merger
a. True b. False Indicate whether the statement is true or false
U.S. labor productivity had slowed down in the 1970s and 1980s, but recent data shows that labor productivity has once again increased in the country
a. True b. False Indicate whether the statement is true or false
If the GDP deflator in 2009 was 160 and the GDP deflator in 2010 was 180, then the inflation rate in 2010 was 12.5%
a. True b. False Indicate whether the statement is true or false
Use the following diagram of two product demand curves to answer the question. 
On the basis of this diagram, we can say that
A. over the range P1P2, price elasticity of demand is greater for D1 than for D2. B. over range P1P2, price elasticity is the same for the two demand curves. C. over the range P1P2, price elasticity of demand is greater for D2 than for D1. D. not enough information is given to compare price elasticities.