In the short run, a purely competitive seller will shut down if product price:
A. equals average revenue.
B. is greater than MC.
C. is less than AVC.
D. is less than ATC.
Answer: C
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Which of the following four firms would most likely be part of a perfectly competitive market?
A) Village Pizza sells NY style pizza and hard-to-find microbrews in a college town. B) The WaveHouse is the only place in San Diego where you can ride an indoor 10 foot wave. C) Mark sells the tomatoes he grew in his backyard at the local farmers market. D) Amara Massage specializes in pre- and post-natal massage.
Several arguments suggest that low-income countries might have an advantage achieving greater worker productivity and economic growth in the future. Give two such arguments
If aggregate quantity supplied exceeds aggregate quantity demanded, we can expect an unplanned
A. depletion of inventories, causing firms to raise prices. B. depletion of inventories, causing firms to lower prices. C. accumulation of inventories, causing firms to raise prices. D. accumulation of inventories, causing firms to lower prices.
The gross domestic product is not a good measure of the standard of living in a nation because it:
A. Includes the cost of health insurance B. Excludes payments for pollution control equipment C. Does not account for the size of the population D. Does not account for the cost of police protection