In which of the following cases would a firm exit from a market?
A. P < long-run ATC.
B. P > short-run ATC.
C. P < short-run ATC.
D. P > long-run ATC.
Answer: A
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Tobin's q theory suggests that monetary policy may affect investment spending through its impact on
A) stock prices. B) interest rates. C) bond prices. D) cash flow.
Other things remaining the same, a decrease in inflationary expectations causes the velocity of money to:
a. Rise. b. Fall. c. Not change.
Which of the following provisions of the PPACA do proponents expect to reduce the growth of health care spending?
A. Prohibiting insurers from dropping or denying individuals with preexisting conditions. B. Allowing individuals to purchase coverage through insurance exchanges. C. Subsidizing purchases of insurance for those complying with the personal mandate. D. Expanding access to Medicaid coverage.