A firm in a competitive industry faces the following short-run cost and revenue conditions: ATC = $16; AVC = $8; and MR = MC = $12. This firm should
A) expand production and keep price constant.
B) decrease production and raise its price.
C) shut down.
D) continue to operate at the same price and output level in the short run.
D
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A farmer who sells September corn futures at the time he plants his corn in May is
A) competing against speculators, who profit from price fluctuations. B) increasing his risk from price fluctuations. C) reducing his risk from price fluctuations. D) reducing or increasing his risk from price fluctuations, depending on what subsequently happens to the price of corn.
If interest rates are rising in an economy, what might the relationship be between savings and investment that is causing this to happen?
a) Savings is greater than investment demand. b) Investment demand is greater than savings. c) Savings and investment are both rising rapidly. d) Savings and investment are both falling rapidly.
The mirror image of the marginal cost curve is the
A. average fixed cost curve. B. marginal product curve. C. total variable cost curve. D. average total cost curve.
During 2016, Tony's assets equal $300,000 and his net worth is $50,000. Tony's liabilities are
A. $50,000. B. $150,000. C. $200,000. D. $250,000.