If a perfectly competitive firm cannot avoid economic losses, it should continue to operate in the short run as long as
a. marginal revenue exceeds average fixed cost
b. price exceeds average total cost
c. the market price exceeds average total cost
d. the marginal revenue is less than the average variable cost
e. price exceeds average variable cost
E
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Indicate whether the statement is true or false
The slope of the utility of wealth curve of a risk-averse person
A) increases as wealth increases. B) decreases as wealth increases. C) is constant. D) is negative.
Describe two types of specialization in production
Please provide the best answer for the statement.
When resources are misallocated, or allocated inefficiently,
A. then it must be the case that the good is a public good. B. then it must be the case that there is imperfect information in the market. C. then there must be external costs or benefits in production. D. market failure occurs.