If a firm stops production, then its:
A. variable costs decrease to zero.
B. fixed costs stay the same.
C. total costs decrease.
D. All of these are true.
D. All of these are true.
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A perfectly competitive apple farm produces 1,000 bushels of apples at a total cost of $36,000. The price of each bushel is $50. Calculate the firm's short-run profit or loss
A) profit of $50,000 B) loss of $14,000 C) profit of $14,000 D) There is insufficient information to answer the question.
Assume the graph shown represents the market for pizzas sold in an hour. If the original equilibrium was D and S1. Which of the following is true when S1 shifted to S2?
A. Equilibrium price decreased by $5.
B. Equilibrium quantity increased by 20.
C. Equilibrium price increased by $5.
D. Equilibrium quantity increased by 30.
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.
Suppose the total market value of all the final goods and services produced in the country of Rushya was $8 billion in 2008 (measured in 2008 prices) and $9 billion in 2009 (measured in 2009 prices). Which of the following statements is definitely correct?
A. Real GDP increased in Rushya between 2008 and 2009. B. Average price levels increased in Rushya between 2008 and 2009. C. Production increased in Rushya between 2008 and 2009. D. Whether real GDP increased cannot be determined with the information given.