Let us suppose Harry's, a local supplier of chili and pizza, has the following revenue and cost structure:
A. Harry's should stay open in the long run
B. Harry's should shut down in the short run
C. Harry's should stay open in the short run
D. Harry's should shut down in the short run but reopen in the long run
C. Harry's should stay open in the short run
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To find the cost of the CPI market basket in the base period prices we have to multiply the
A) quantities in the CPI market basket by the base period prices and then multiply by 100. B) quantities in the CPI market basket by the base period prices. C) current period quantities in the CPI market basket by the current period prices. D) quantities in the CPI market basket by the current period prices. E) current period quantities in the CPI market basket by the base period prices.
Above-normal returns on stock investments can be expected by investors who
A) possess insider information. B) are wealthy enough to hold the stock of many different companies in their portfolios. C) are risk seeking. D) concentrate their investments in one or two stocks.
In a perfectly competitive market, producers efficiently use their scarce resources to produce what consumers want and as a result they achieve: a. productive efficiency
b. allocative efficiency. c. economic efficiency. d. constant returns of scale.
Large income differences will be eradicated if the market mechanism is working well
a. True b. False Indicate whether the statement is true or false