A perfectly competitive firm will shut down in the short run when marginal revenue equals marginal cost at a price less than minimum average variable cost
a. True
b. False
Indicate whether the statement is true or false
True
Economics
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If a good is inferior, its income elasticity will be
A) 0. B) 1.0. C) negative. D) positive.
Economics
Short run expenditure patterns may change very little when income declines
Indicate whether the statement is true or false
Economics
Suppose a monopoly producer is also a monopsonist in the labor market. Demand for the output is p = 100 - Q. The production function is Q = L, and the labor supply curve is w = 10 + L. How much labor does the firm hire? What wage is paid?
What will be an ideal response?
Economics
With the full implementation of the Single European Act, the EU became a
A) common market. B) free trade area. C) customs union. D) economic union. E) None of the above.
Economics