A firm's marginal cost has a minimum value of $80, its average variable cost has a minimum value of $90, and its average total cost has a minimum value of $100 . Then the firm will shut down in the short run once the price of its product falls below
a. $100.
b. $90.
c. $80.
d. $40.
b
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According to the textbook, when claim they are using the cost-plus-markup formula, they
A) usually choose a 10 percent markup B) usually choose a 50 percent markup C) usually choose a 100 percent markup D) might not be correctly describing their price-setting behavior.
During the antebellum period, rapid economic growth was accompanied by significant changes in public economics and policy-making
Indicate whether the statement is true or false
If the United States has a trade deficit with China, then China must have
A) a trade surplus with countries other than the United States. B) a trade surplus with the United States. C) a trade deficit with countries other than the United States. D) a trade deficit with the United States.
Advantages of specialization do not include: a. reduced interdependence
b. the exploitation of comparative advantage. c. the ability to utilize more complex production processes. d. Productivity gains from learning by doing.