If TR > TVC but TR < TC, a firm would ________ in the short run and ________ in the long run.
A. operate; expand
B. shut down; expand
C. shut down; exit the industry
D. operate; exit the industry
Answer: D
You might also like to view...
Popular criticism of determining who gets what by means of money prices increases in periods of inflation because
A) inflation hits poor people the hardest. B) people mistakenly assume an increase in money prices makes them worse off. C) the wealthy will eventually acquire everything if inflation continues long enough. D) there is no one who benefits from rising prices.
Social Security wealth is the future value of the Social Security system.
A. True B. False C. Uncertain
The principal determinants of total and average cost curves are the firm's technology and the prices of its inputs
a. True b. False Indicate whether the statement is true or false
Economists believe that trade is necessary for prosperity because
a. every country lacks some vital resources that it can get only by trade. b. each country's climate makes it a relatively efficient producer of some goods, and an inefficient producer of other goods. c. specialization permits large outputs and can produce economies of scale. d. All of the above are correct.