The length of the short run is the same for all firms
Indicate whether the statement is true or false
False. Firms differ in their ability to change the amount of capital they employ. Therefore, the short-run period is likely different for firms in different industries.
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Which antitrust act prohibits exclusive dealing, tying contracts, stock acquisitions, and interlocking directorates?
a. Sherman Antitrust Act of 1890. b. Clayton Act of 1914. c. Federal Trade Commission Act of 1914. d. Robinson-Patman Act of 1936. e. Cell-Kefauver Act of 1950.
The owner of a good has the right to decide how that good is used and to restrict others from using that good. This idea is known as:
a. the principle of mutual excludability. b. the principle of comparative advantage. c. the principle of public ownership. d. the principle of negative externalities. e. the law of demand.
If the income elasticity for a particular good is 0.8, we would expect to see that good
a. taxed more often b. consumed in wealthier countries c. on supermarket shelves d. consumed in high-income neighborhoods e. consumed in low-income communities
A custom paper company finds that when the price of paper is $5, its total revenues are $60,000 . Its total costs are $70,000 . of which $57,000 are variable costs. From this we can infer
a. the firm sells 14,000 units of paper b. economic profit is $10,000 c. the firm should shut down in the short run d. total fixed costs are $3,000 e. price is greater than average variable cost