A firm that shuts down in the short run experiences losses equal to
A. total fixed costs.
B. zero.
C. total variable costs.
D. total marginal costs.
Answer: A
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If education produces positive externalities and the government does not intervene in the market, we would expect
a. the equilibrium price to be higher than the optimal price. b. the equilibrium quantity to be lower than the optimal level. c. the equilibrium quantity to be higher than the optimal level. d. both a and b are correct
During the 1990s, the price of VCRs fell by about 30 percent, and quantity sold decreased by the same amount. The demand for VCRs must
What will be an ideal response?
Which of the following is not a characteristic of a monopolistically competitive market?
A. Firms hold patents on their products. B. The products that firms sell are slightly different. C. Firms have some control over price. D. There are no artificial barriers to entry.
In the market for bicycles, explain what happens to the supply and demand curves when there is an increase in the price of steel used to make bikes
What will be an ideal response?