A firm that shuts down in the short run experiences losses equal to
A) zero.
B) total variable costs.
C) total fixed costs.
D) total marginal costs.
C
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Most cartels cease to be effective because:
A. the dominant firm buys out the other firms. B. of the incentive to cheat on the cartel agreement. C. of strict enforcement of antitrust legislation. D. consumers discover the cartel and buy from other firms instead.
The combination of food and clothing shown by point G on the above graph:
A. results only because society allocates its resources inefficiently. B. can be attained only if some of society's resources are unemployed. C. suggests that the law of increasing relative costs is not operating in this case. D. is not attainable, given society's available resources and technology.
Which of the following are ways to ration goods and services?
A. price B. political power C. physical force D. All of these are correct.
In the long run, a perfectly competitive market produces at ________, whereas the monopolistic competitive firm does not.
A. the point at which MR = MC=ATC B. the output at which the lowest average total cost of production is reached C. zero economic profits D. an output level at which positive economic profits exist