In the short run, a firm should exit the industry if its marginal cost exceeds its marginal revenue
a. True
b. False
Indicate whether the statement is true or false
False
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For choice sets generated from endowment bundles, the budget line will shift parallel if both prices change by the same proportion.
Answer the following statement true (T) or false (F)
In the market for chocolate chip cookies, if the demand decreases while the supply increases, the price definitely falls but the quantity might increase, decrease, or remain the same
Indicate whether the statement is true or false
For which of the following goods is the income elasticity of demand likely to be largest?
a. paperback mystery stories b. best-selling hardcover novels c. used textbooks d. children's books e. leather-bound editions of Shakespeare
If in some production range average cost is rising, the firm is experiencing
a. increasing returns to scale. b. decreasing returns to scale. c. constant returns to scale. d. increasing costs per unit of output.