If the market price in a competitive market is below the minimum of average variable cost the firm will shut down
Indicate whether the statement is true or false
True . At this price total fixed costs are smaller than the operating loss. It pays for the firm to shut down.
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Being a price taker, a perfectly competitive firm cannot receive a producer surplus in the short run
Indicate whether the statement is true or false
Refer to Figure 23-1. According to the figure above, at what point is aggregate expenditure greater than GDP?
A) J B) K C) L D) none of the above
If Sally Smith creates VCU1 by playing an online game, the effect is to cause the nation's:
a. Monetary base to fall. b. M2 money supply to fall. c. M2 money multiplier to remain the same. d. M2 money multiplier to fall.
If a country has a flexible exchange rate, will high rates of inflation, though generally harmful, price this country's goods off world markets? Explain.
What will be an ideal response?