In the long run, a firm should exit the industry if its total costs exceed its total revenues
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Suppose the base reference period is 1982-1984. If your nominal wage rate is $8.00 per hour when the CPI is 180, what is your real wage rate in 1982-1984 dollars?
What will be an ideal response?
In the above figure, a negative relationship between price and quantity is shown in
A) Figure A. B) Figure B. C) both Figure A and Figure B. D) neither Figure A nor Figure B.
Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The price received by sellers with the tax is:
A. $2.33. B. $1.50. C. $1.75. D. $1.83.
Which of the following does not shift the supply of real loanable funds to the right (i.e., increase it)?
a. A rise in real income. b. Higher consumer indebtedness levels relative to income. c. The expectation of higher incomes. d. All of the above increase the supply of real loanable funds.