Even when a firm produces the level of output at which price equals marginal cost, it should shut down if its total revenue is less than its:
A. total cost.
B. fixed cost.
C. marginal cost.
D. variable cost.
Answer: D
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Neil and Derek are brothers who are very fond of watching television. They share a television but watch different shows. Every evening after coming home from school, they argue over who will watch television and for how long
Irritated with their fight, their parents asked Neil to decide for how long each of them would watch television. They also told him that if the brothers failed to reach an agreement, they would not let either of them watch it. a) How should Neil make his decision? b) What will be the outcome if Derek prefers fairness over watching television?
Albatross Software has two main products: WindSong is a program that can be used to edit audio files and SunBurst is a program that can be used to edit digital photos. The two major types of customers are small businesses and home users
The small business customers have a reservation price of $300 for WindSong and $450 for SunBurst. The home users have a reservation price of $100 for WindSong and $125 for SunBurst. Which of the following statements is true? A) Bundling the two software products is not likely to be profitable because the marginal cost of producing software is positive by very small. B) Bundling the two software products is not likely to be profitable because the consumer demands are homogeneous. C) Bundling the two software products is likely to be profitable because the demands are negatively correlated. D) Bundling the two software products is not likely to be profitable because the demands are positively correlated.
Depending on congestion, national parks can be either a common resource or a public good
a. True b. False Indicate whether the statement is true or false
Why is a balance-of-payments deficit not necessarily good or bad if it occurs in one given year, but potentially very harmful if maintained over a number of years?
What will be an ideal response?