A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 200 units is $4.00. The minimum possible average variable cost is $3.50. The market price of the product is $3.00. To maximize profits or minimize losses, the firm should:
A. Continue to produce 200 units
B. Continue production, but produce less than 200 units
C. Increase production to more than 200 units
D. Shut down
D. Shut down
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Which of the following is an example of a price ceiling?
A. Subsidies for apartment rent in major cities. B. Price supports for agricultural products. C. Minimum-wage laws for unskilled workers. D. Limits on interest rates charged by credit card companies.
When the price of a good falls and the prices of other goods and a consumer's income remain the same, explain what happens to the consumption of the good whose price has fallen and to the consumption of other goods
What will be an ideal response?
Which of the following ways can a multinational enterprise (MNE) adopt to reduce its exposure to political risks in its host country?
A. By negotiating with the host country's government to clear off its debts B. By establishing more than one affiliate in the host country C. By threatening to cease all exports of its products to the host country D. By equating its physical assets in the host country with its local borrowings
Consider the monopoly in the figure below with price regulated at $20 per unit. Monopoly profits at the regulated price are: 
A. $100. B. $1,350. C. $200. D. There is insufficient information to determine the monopoly profits.