If a firm shuts down in the short run, it will:
a. incur losses equal to its fixed costs.
b. produce at the output level where MC = MR.
c. reduce its losses to zero.
d. do this because P > AVC.
e. have total revenue greater than total fixed costs.
a
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Refer to Figure 11-2. The curve labeled "E" is
A) the output supply curve. B) the average product curve. C) the marginal product curve. D) the total product curve.
An increase in the quantity demanded could be caused by:
a. an increase in the price of substitute goods b. a decrease in the price of complementary goods c. an increase in consumer income levels d. all of the above e. none of the above
Long-run average total cost must always be
a. rising b. declining c. greater than or equal to the marginal unit of variable cost d. greater than or equal to the short run average total cost e. less than or equal to short-run average total cost
Which of the following illustrates government acting as a referee?
a. taxing high income persons b. enforcing contract provisions between buyer and seller c. buying new weapons for defense d. mailing checks to social security recipients e. collecting data on imports and exports