The above figure shows a perfectly competitive firm. If the market price is more than $20 per unit, the firm
A) will definitely shut down to minimize its losses.
B) will stay open to produce and will make zero economic profit.
C) will stay open to produce and will incur an economic loss.
D) will stay open to produce and will make an economic profit.
E) might shut down but more information is needed about the fixed cost.
D
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Refer to the figure above. The quota shown in the diagram equals
A) 200 units. B) 500 units. C) 1000 units. D) 1200 units.
Actions against alleged violators of the antitrust statutes may be initiated by the Justice Department, by the Federal Trade Commission, and by private plaintiffs
a. True b. False Indicate whether the statement is true or false
The effect of a decline in taxes on the level of income will differ somewhat from an increase in government expenditures of the same amount because
A. the MPC that applies to the incomes of households always exceeds the MPC that applies to business incomes. B. tax declines tend to be more expansionary. C. the multiplier is high when the MPS is low. D. households may not spend all of an increase in disposable income.
How does the use of credible threats or empty threats by firms affect outcomes and the Nash equilibrium in one-period games?
What will be an ideal response?