If TR > TVC but TR < TC, a firm would ________ in the short run and ________ in the long run.
A. operate; expand
B. shut down; expand
C. shut down; exit the industry
D. operate; exit the industry
Answer: D
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The mercantilist economic doctrine was widely followed from the sixteenth to the eighteenth century in Europe
Mercantilists advocated the use of tariffs to restrict trade as they believed that countries that export more than they import will increase wealth. What could be the problem with such an economic policy?
Diversification of a portfolio leads to:
a. a negative correlation between the investments. b. a lower mean of returns. c. a lower variance of returns. d. a higher standard deviation of returns.
The concept of aggregate supply refers to a
a. fixed number of output. b. list of products demanded. c. schedule of output. d. schedule of production costs.
In one hour, Sue can produce 40 caps or 4 jackets and Tessa can produce 80 caps or 4 jackets. Sue's opportunity cost of producing a cap is _____ jackets and Tessa's opportunity cost of producing a cap is ____ jackets.
Fill in the blank(s) with the appropriate word(s).