If the price exceeds the average variable cost but is less than the average total cost, a firm
A) should further differentiate its product.
B) should stay in business for a while longer until its fixed costs expire.
C) is making some profit but less than maximum profit.
D) should shut down.
Answer: B
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Government decisions about the level of taxation and public spending are called:
A. fiscal policy. B. monetary policy. C. congressional policy. D. legislative budgeting policy.
Economies of scale and scope encourage free competition
a. True b. False Indicate whether the statement is true or false
Which of the following events always would increase the size of the deadweight loss that arises from the tax on gasoline?
a. The demand for gasoline becomes more inelastic. b. The slope of the supply curve for gasoline becomes steeper. c. The amount of the tax per gallon of gasoline increases. d. All of the above are correct.
If a woman is pregnant and her boss must decide to give a promotion that entails a move to another city in a time frame that coincides with the expected birth of her child then the boss
A. can chose to by-pass her and give the pregnancy as a legally-acceptable reason. B. can chose to by-pass her and give the pregnancy as a legally-acceptable reason, as long as the next promotion goes to her. C. must ignore the pregnancy in making the decision of whom to promote. D. must give her the promotion, regardless of other candidates.