If a competitive firm is operating in short run equilibrium and then its fixed costs fall by 40 percent, it should:
a. use more labor and less capital in current production.
b. not change its output
c. increase its output.
d. decrease its output.
b
Economics
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Indicate whether the statement is true or false
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When gold prices become more volatile, the ________ curve for gold shifts to the ________; ________ the price of gold
A) supply; right; increasing B) supply; left; increasing C) demand; right; decreasing D) demand; left; decreasing
Economics
Smartphones are examples of negative externalities
a. True b. False Indicate whether the statement is true or false
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The more elastic the supply of a product, the more the actual burden of a tax on the product will:
A. fall on sellers. B. fall on buyers. C. fall equally on both buyers and sellers. D. create a smaller deadweight loss (or excess burden).
Economics