In the short run, a perfectly competitive firm will shut down if at the profit maximizing quantity the
A) P < AVC.
B) AVC < ATC.
C) P > ATC.
D) P > MC.
A
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Based on the production data for Pat's Pizza Parlor in the above table, which of the following pair of workers have the same average product?
A) 1 and 2 B) 2 and 4 C) 1 and 5 D) 2 and 5
John Brown's utility of income function is U = log(I+1), where I represents income. From this information you can say that
A) John Brown is risk neutral. B) John Brown is risk loving. C) John Brown is risk averse. D) We need more information before we can determine John Brown's preference for risk.
Market failure happens when a market does not generate the most efficient outcome.
Answer the following statement true (T) or false (F)
Use the above figure. At an output equal to "Q" the total cost for the firm will be the area
A. OQEB. B. OQBC. C. OQDC. D. OQFA.