When total revenue is less than variable costs, a firm in a competitive market will
a. continue to operate as long as average revenue exceeds marginal cost.
b. continue to operate as long as average revenue exceeds average fixed cost.
c. shut down.
d. raise its price.
c
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In the United States, the inflation rate since 1999 generally was
A) lower than between 1979 to 1981. B) higher than between 1979 to 1981. C) higher than in the 1980s. D) much higher than between 1985 to 1995. E) negative.
A risk averse person has diminishing marginal utility of wealth
Indicate whether the statement is true or false
In the case of Thailand in 1997, the Thai government was running a large:
A) current account surplus, requiring capital inflows from abroad. B) current account deficit, requiring capital inflows from abroad. C) current account surplus, requiring capital outflows. D) current account deficit, requiring capital outflows.
Free markets can:
a. prouduce goods and services with maximum efficiency b. solve unemployment c. protect the environment d. all of these