A firm will shut down in the short run when
A. it is making a loss.
B. price is below average total costs at all possible rates of output.
C. price is below average variable costs at all possible rates of output.
D. price is below marginal cost at all possible rates of output.
Answer: C
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As price rises, quantity supplied ____________.
Fill in the blank(s) with the appropriate word(s).
After the September 11, 2001 terrorist attacks, federal government spending
A. increased at a rate much faster than it had before the attacks. B. increased, but at a rate much slower than it had before the attacks. C. increased, but at a rate almost exactly the same as it had before the attacks. D. was cut.
Total factor productivity encompasses
A) labor. B) capital. C) output. D) know-how.
The implementation of new technology can be quick throughout the world if
(a) patent rights are leased and purchased. (b) unions are strong. (c) economies are closed to foreign competition. (d) tariffs are placed on those imported goods and services benefiting from the technological advancements in the rest of the world.