A firm that shuts down temporarily has to pay
a. its variable costs but not its fixed costs.
b. its fixed costs but not its variable costs.
c. both its variable costs and its fixed costs.
d. neither its variable costs nor its fixed costs.
b
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For a perfectly competitive firm, marginal revenue is
A) less than the price. B) greater than the price. C) equal to the price. D) equal to the change in profit from selling one more unit. E) undefined because the firm's demand curve is horizontal.
Why doesn't the process of electing officials prevent rent-seeking and corruption?
A. It actually does prevent this behavior in the real world. B. People are generally disinterested in preventing both of these in government. C. Those who win special favors through this behavior simply pay others off to keep them from whistleblowing. D. The cost of gathering such information is often too costly.
According to Keynesian theory, which of the following is not true e of all short-term macro equilibria?
A. The aggregate demand curve intersects the aggregate supply curve. B. All macroeconomic goals are achieved. C. The economy may or may not be at full employment. D. Producers are selling everything they currently produce.
At which of the following price levels would a shortage occur in Figure 8.4?
A. P1. B. P2. C. P3. D. P4.