A firm sells 1000 units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25 . At what price does the firm consider shutting-down in the short run?
a. $25
b. $0
c. $15
d. $10
d
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Health insurance companies impose deductibles on policies and copayments on claims to
A) increase prices. B) increase sales. C) reduce the moral hazard problem. D) increase asymmetric information.
Government certification of the weights and measures used in business can be justified because
A) no business operated for profit would have any interest in weighing and measuring accurately. B) people cannot be trusted. C) government officials, unlike private parties selling for profit, have no incentive to cheat. D) it reduces total transaction costs below what they would be if all individual buyers or sellers had to check for themselves.
The Equal Employment Opportunity Commission
a. was established by the Equal Rights Act of 1984 b. examines cases in which a worker is not paid the same as other workers performing the same work c. guarantees a worker's right to a job d. established a minimum wage for minorities e. has effectively eliminated racial discrimination in the workplace
If Brazil experienced a period of rapid and unexpected inflation, causing Brazilians to lose confidence in the local currency (real) as a store of value, which of the following would be least likely to occur?
a. The value of the Brazilian real would depreciate on the foreign exchange market. b. Foreign currency would be used as a substitute for the real. c. The real would be used as a store of value in other countries d. Brazilians would save less. e. The purchasing power of the real would decrease.