The short-run shutdown price for a perfectly competitive firm is where price equals
A. MR.
B. minimum ATC.
C. AR.
D. minimum AVC.
Answer: D
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Everything else equal, when domestic currency appreciates against a foreign currency:
A) the nominal exchange rate goes u
When the price is below the equilibrium price, the quantity demanded
A) is less than the equilibrium quantity and the quantity supplied also is less than the equilibrium quantity. B) is less than the equilibrium quantity but the quantity supplied exceeds the equilibrium quantity. C) exceeds the equilibrium quantity and the quantity supplied also exceeds the equilibrium quantity. D) exceeds the equilibrium quantity but the quantity supplied is less than the equilibrium quantity.
The figure above represents the production possibilities frontier for a country. a) The nation is currently producing at point B and wants to move to point C
What is the opportunity cost of the move? b) The nation is currently producing at point B and wants to move to point A. What is the opportunity cost of the move?
When a company is faced by a kinked demand curve, the marginal revenue curve
A) will be upward sloping. B) will be horizontal. C) will always be zero at the quantity produced. D) will be discontinuous.